Coordinating Minister Airlangga Expressed Drought And Fluctuations In The Price Of South Sumatra Challenges In The Future

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that drought and commodity price fluctuations are still challenges faced by South Sumatra Province (Sumsel) in the future.

"In the future, a number of challenges will still be faced in the South Sumatra Province, such as drought to commodity price fluctuations," said Airlangga while leading the Leader's Offsite Meeting (LOM) of the Coordinating Ministry for the Economy in Palembang City, quoted from ANTARA, Monday, July 22.

To reduce these challenges, Airlangga said, a number of directives include strengthening food production through optimizing irrigation infrastructure, utilizing the People's Business Credit (KUR) program, resolving the National Strategic Project (PSN) to support connectivity, to productive investment utilization.

"I hope that various fiscal needs can also be done in more innovative ways, including cooperation with banks, financial institutions, and government financing institutions such as PT SMI," he said.

Airlangga gave directions regarding the current condition of the national and global economy to all levels of officials within the South Sumatra Provincial Government.

As the 3rd largest economic contributor on the island of Sumatra, the performance of South Sumatra's economic growth in the first quarter of 2024 experienced solid growth in the range of 5.6 percent on an annual basis (yoy) and controlled inflation at 2.48 percent (yoy) as of June 2024.

A number of social indicators of South Sumatra Province also showed improvement starting from the level of inequality as of March 2024 of 0.33 percent and the open unemployment rate as of February 2024 of 3.97 percent.

However, according to him, the South Sumatra Provincial Government needs to be able to overcome the poverty rate which is still above the national figure.

Supported by the mining, industrial and trade sectors, the economy of South Sumatra Province is considered to be getting stronger if it is accompanied by the optimization of these various potentials.

"One of the efforts that can be taken is through downstream mining and agricultural commodities to encourage a sustainable increase in added value," said Airlangga.