Sri Mulyani Claims That The Economic Recovery Is Running As COVID-19 Is Under Control

Sri Mulyani (Photo: ANTARA)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said the success of handling COVID-19 cases was positively correlated with the national economic recovery. According to him, Indonesia has passed the peak of the second wave of COVID-19 where it has touched 50,039 daily cases, and is now below 3,000 daily cases.

In addition, the Minister of Finance said that the government's efforts to maintain and control the spread of COVID-19 were carried out through the implementation of a vaccination program, the implementation of policies to limit community mobility, and efforts to cure patients.

“This is progress that gives a sense of optimism. Later, we hope that it will be translated into social and economic activities of the community," he said in a press statement quoted on Sunday, September 26.

Furthermore, the Minister of Finance explained that the economic recovery was shown by improving a number of macro indicators. This is reflected in community activities that are in an upward trend as shown in the Google Mobility Report in terms of retail and recreation, grocery and pharmacy, as well as increasing aggregates.

Activity at retail sales points to a positive level and sales of people's daily necessities are increasing.

Then, in terms of consumption, activity gradually improved although it was still on hold. This is shown through the retail sales index and the Mandiri spending index, which have increased as an indication of increased consumption. However, the level of public confidence to return to consumption is still lower than before COVID-19.

The Minister of Finance added that the production side has also improved. Production activities increased to meet domestic and foreign needs. This is indicated by the improving manufacturing PMI although still in the contraction zone, growing cement consumption and volume of steel imports, rising electricity consumption driven mainly by industrial electricity consumption, and growth in imports of raw materials and capital goods.

Meanwhile, the trade balance surplus of USD 4.74 billion, the highest in Indonesia's history, also proves the economic recovery. Export performance was mainly driven by an increase in the volume of key exports such as CPO, coal and steel. Meanwhile, import performance was driven by domestic demand for industrial and consumption needs.

"This illustrates a fairly solid economic recovery which we hope will continue," concluded the Minister of Finance Sri Mulyani.