JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said that still strong domestic consumption had a positive impact on MSME actors.
"Domestic consumption is still the foundation of national growth. This is an advantage for MSMEs, yes, because many consumers form a very strong internal market," said Teten in his remarks at the Inabuyer B2B2G Expo 2024 at the Smesco Building, Jakarta, Friday, May 17.
Teten assessed that the implementation of the Inabuyer B2B2G Expo 2024 is an important momentum to support the expansion of MSME products and cooperatives in the procurement of government goods and supply chains for SOEs and the private sector.
"This is precisely what is important, especially in terms of production," he said.
According to him, the 40 percent regulation for the procurement of goods and services in the government must be able to absorb domestic products.
"Especially at this time, yes, the economy is not doing well. Although, Indonesia is still strong enough at 5 percent, but we all have an agreement on whether government spending, BUMN. Including people buying domestic products, shopping domestically. This is to strengthen our economy, yes," he said.
So, said Teten, synergy between MSMEs is needed to strengthen national economic independence. "Global is not doing well, because it is spending our money domestically," he added.
Previously, Bank Indonesia (BI) Governor Perry Warjiyo estimated that economic growth in the first and second quarters in 2024 would be higher than the fourth quarter of 2023, supported by strong domestic demand.
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"Economic growth in the first and second quarters of 2024 is expected to be higher than the fourth quarter of 2023, supported by domestic demand that remains strong from household consumption in line with Ramadan and Eid al-Fitr 1445 Hijri," Perry said in Jakarta, Wednesday, April 24.
Building investment is higher than predicted, supported by the continued National Strategic Project (PSN) in a number of areas and the development of private property as a positive impact of government incentives.
Spatially, economic growth across the region remains good, supported by domestic demand, especially household consumption.
With these various developments, Indonesia's economic growth in 2024 is projected to be in the range of 4.7 percent to 5.5 percent.
In the future, Bank Indonesia will continue to strengthen policy synergies with the government, including through the government's fiscal stimulus with BI's macroprudential stimulus to support sustainable economic growth, especially in terms of domestic demand.
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