Jokowi Optimistic Economic Growth In 2021 Reaches 5.5 Percent: Factory, Industry, And Manufacturing Already Operating

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Of the Presidential Secretariat)

JAKARTA - Indonesian President Joko Widodo (Jokowi) is optimistic that the target of economic growth in 2021 of 4.5-5.5 percent will be achieved because a number of parameters for economic recovery have shown encouraging results.

This was conveyed by the President when giving directions virtually to all regional heads throughout Indonesia on Wednesday, April 28, as in the video uploaded via YouTube on the Presidential Secretariat channel, in Jakarta Thursday.

"Why are we optimistic? Because it seems that now factories, industries, or manufacturers have moved. This is reflected in the purchasing manager index, which was at 51 before the pandemic, it is now above normal before the pandemic, which is 53.2", said the President, quoted from Antara.

Similar conditions were obtained from the level of electricity consumption for both industry, households, and government, as well as an increase in imports of capital goods needed to drive the industrial sector up to 33.7 percent after previously recording a negative value.

Likewise with the increase in the Consumer Confidence Index from the previous 84.9 which is now at 93 and the Retail Sales Index which also increased this March.

"This means that there is demand there, there is shopping there, there is consumption. It can be seen in the Retail Sales Index", he said.

Therefore, to maintain this positive momentum, President Joko Widodo reminded regional heads to hasten the regional budget (APBD) spending, especially capital expenditures.

The Head of State noted that as of the end of March, realized capital expenditures had only reached 5.3 percent. In fact, according to him, the circulation of money generated through this capital expenditure will greatly determine economic growth.

"So the transfer from the center to the regions is not spent but is put in the bank. This will cause the later slowing of economic growth. At the end of March, I saw IDR 182 trillion in regional banking. It was not spent immediately", said the President.

In addition, social assistance to ease the burden on communities affected by the pandemic, according to him, must also be distributed immediately. Public consumption through a number of such aids said the President, besides being able to help the community, it will also encourage economic growth in the regions.

"What I saw as of last April that only 32 percent had been distributed. It's still very small, only IDR 1.5 trillion. I always follow figures like this, so I remind you again because they are important for regional and national economic growth", said the President.