Encouraging Indonesia's Economic Growth, Government Increases KUR Distribution

Rupiah (Photo: Antara)

The Coordinating Ministry for Economic Affairs said the government continues to strive to encourage higher economic growth in the fourth quarter of 2024, one of which is by increasing the distribution of People's Business Credit (KUR).

"We need it in the fourth quarter, an increase in economic activity. If you see or hear what BPS said in the third quarter yesterday for economic growth, which is 4.95 percent or the cumulative 5.03 percent, then if the problem with the government's target is 5.1 percent, we need 5.2 percent in the fourth quarter," said Deputy for Macroeconomics and Finance Coordination at the Coordinating Ministry for the Economy Ferry Irawan at the Press Conference to One KUR Decade on Wednesday, November 13.

Ferry said that to achieve the economic growth target in the fourth quarter of 5.2 percent of the government was still trying its best, because there was still about two months until the end of the year.

In addition, Ferry said that the APBN is still available to support economic recovery, as well as the People's Business Credit (KUR) program which continues to be encouraged to achieve the target.

"Yes, right now we are still trying, here. There are still 2 months. Well, after 2 months, the APBN is still there. Then, our KUR was also earlier, right, we were encouraged," he said.

Therefore, Ferry hopes that at least it can reach the target of 5.1 percent, as stated in the Direction Report and Economic Achievement (LAPSEM). On a cycle, APBN spending is usually higher in the fourth quarter, so it is optimistic that the achievement of this target can be realized.

"So, yes, hopefully, like the one in LAPSEM, at least maybe 5.1 yes, at least, if we imagine it. Well, cycleally, the APBN is really high in that, yes, in the fourth city, yes. That's what we hope for, really," he said.

In addition, Ferry conveyed that seasonal factors, such as the Christmas and New Year (Nataru) holidays, also have an effect on improving the economy at the end of the year.

Ferry added that with social assistance programs, including the adjustment of Value Added Tax (VAT) which is DTP (Government Borne) for the housing sector, it is hoped that it can provide the necessary economic stimulus to maintain people's purchasing power and support economic recovery.

"I often say, why do we return the VAT DTP housing again from 50 at the beginning of the second semester, to 100 percent in the semester, in September to December, to anticipate it actually, yes. Make purchasing power, then we need stimulus, that's part of us for that, that's it. To maintain anticipation, yes, the whole cycle was, that's it," he explained.