Sri Mulyani: Need To Encourage Manufacturing Industry To Work On 8 Percent Economic Growth

Minister of Finance Sri Mulyani (Photo: Antara)

JAKARTA - President Prabowo targets economic growth to reach 8 percent. Therefore, Finance Minister Sri Mulyani Indrawati said the government continues to maintain stability both in terms of demand and supply.

"So far, inflation has been maintained low because of our ability to use tools, both monetary, fiscal, and coordination between the central and regional governments to be able to maintain various prices of goods and services," he said at the BRI Microfinance Outlook 2025 event, Thursday, January 30.

Sri Mulyani said that amid the high global inflation which caused a surge in interest rates, Indonesia managed to maintain economic stability as reflected in the recovery of the post-COVID-19 production sector which also took place relatively evenly, with the manufacturing sector which contributed to the largest tax and economic contribution and continued to be encouraged through the downstream program.

"For the labor-intensive manufacturing sector, which is under pressure due to global competition and sluggishness from the global economy which causes destinations from exports, whether it is from the textile side, textile product, footwear," he said.

Therefore, Sri Mulyani said that the government continues to formulate concrete steps, including using fiscal instruments to support the revitalization of labor-intensive industries and the development of new industries.

In addition, the government also provides credit interest subsidies of up to 5 percent, outside of People's Business Credit (KUR) which already favors the middle and micro groups.

"So that access to its capital affordability in terms of interest rate even though there is currently a tendency for increasing interest rates not to be borne by entrepreneurs and this is the cost of the state budget," he said.

According to Sri Mulyani, this is part of the government's efforts to maintain economic health, especially for medium and small businesses and maintain the contribution of the production sector such as manufacturing, trade, construction, and the food and beverage industry, which has the potential to benefit greatly from the program to provide free nutritious food.