Pursuing Indonesia's Economic Growth Target, Entrepreneurs Ask The Government To Increase Productive Expenditures

Chairman of the Indonesian Employers' Association (Apindo), Shinta Widjaja Kamdani. (Photo: Doc. ANTARA)

JAKARTA - The Indonesian Employers' Association (Apindo) revealed that the government must increase the absorption of state spending, especially in the productive spending budget so that Indonesia's economic growth target of 5.2 percent in 2024 can be achieved.

Chairman of the Indonesian Employers' Association (Apindo), Shinta Widjaja Kamdani said, productive spending such as infrastructure spending must remain boosted, such as the Housing Financing Liquidity Facility (FLPP) program for home-income people (MBR) must continue to be carried out.

"The FLPP needs to be developed and can still run. So there needs to be attention from the government so that the quota cannot be achieved. There are costs that need to be pushed," he told the media crew at the Coordinating Ministry for the Economy Office, Tuesday, July 16.

From a side, Shinta said that regional spending also needs to be increased so that it has an impact on the regional economy.

"We must also continue to encourage this like an e-catalog, but this regional expenditure must also continue to be accelerated because it clearly affects the regional economy," he said.

Shinta assessed that with the current economic conditions, the State Revenue and Expenditure Budget (APBN) is needed to be directed at industries that can produce high productivity and added value.

"We also see that there are basics related to how we can further develop productivity through added value," he said.

He emphasized that it is very important to encourage in terms of state revenues originating from investment and exports to boost economic growth.

"It is very important that we continue to encourage, in terms of income, namely in terms of investment and exports, meaning that in terms of exports we must ensure that we have a competitive business climate in the country to be able to further improve," he said.

With global conditions currently full of uncertainty, said Shinta, it is not only possible to see from a macroprudential point of view but also to increase export productivity and investment to increase revenue.

"We also continue to encourage exports, for example, diversification for exports to other countries, this is necessary. So in addition to focusing on situations full of uncertainty, we must continue to encourage exports and investments," he said.