How The Government Increases Indonesia's Economic Growth Until The End Of The Year

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

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto confirmed that he would boost a number of sectors to strengthen economic growth until the end of this year.

The reason is, Indonesia's economic growth grew slowly by 5.05 percent in the second quarter of 2024.

"For the third and fourth quarters, of course, the government will see what factors can be encouraged. However, one thing the government can encourage is government spending," said Airlangga at his office, Monday, August 5.

Airlangga hopes that government spending can boost the economy in the third quarter of 2024.

In addition, he also ensured that the facilities provided to the construction sector would also be a concern in the future.

The other sectors that will be boosted are MSMEs.

"Yesterday the government pushed for policies for MSMEs involved in KUR whose contracts have been carried out in 2022 and can be restructured in accordance with OJK regulations," he said.

Previously, the Central Statistics Agency (BPS) revealed that economic growth in the second quarter of 2024 reached 5.05 percent year on year (yoy).

This growth slowed down when compared to the previous quarter which reached 5.11 percent (yoy).

BPS Deputy for Balance and Statistics Analysis Moh. Edy Mahmud said that Indonesia's largest economic growth driver, according to the business field, was driven by the processing industry.

"In the second quarter of 2024, the processing industry became the largest source of growth, reaching 0.79 percent (yoy)," he said at a press conference, Monday, August 5.

However, Edy said, the processing industry grew lower when compared to the previous quarter which reached 0.86 percent.