Coordinating Minister Airlangga: Government And Entrepreneurs Collaboration Supports National Economic Growth

Coordinating Minister Airlangga Hartarto (center) with businessmen (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA – The government, through the Coordinating Minister for the Economy, Airlangga Hartarto, said that strong collaboration with entrepreneurs is very much needed in responding to various economic challenges that exist today.

According to Airlangga, good synergy can encourage regional economic development, especially to accelerate commodity downstream. In addition, entrepreneurs must also continue to create innovations in their business, and take advantage of advances in digital technology and big data to be able to increase their business competitiveness and stay ahead in this competitive world.

"The government and entrepreneurs can play an active role in creating a conducive business climate, as well as work together to support Indonesia's economic growth", he said at the 1st National Conference of the National Entrepreneurs Network (JAPNAS) quoted Friday, August 26.

Airlangga added, that as part of the support for these business actors, the government has distributed People's Business Credit (KUR) which is targeted at IDR 373 trillion this year.

"So, the potential for entrepreneurs to get KUR is still large and this can also be used for the agricultural sector which is given a ceiling of IDR 90 trillion. Next year, the KUR target will be increased again to IDR 460 trillion", he said.

In the long term, it is said that the government will continue to ensure the passage of structural reforms to encourage competitiveness and the business climate in Indonesia, one of which is through the Job Creation Law and the implementation of an integrated electronic business licensing service system (OSS RBA).

For information, Indonesia's economic prospects are increasingly optimistic as indicated by the economic growth of 5.44 percent (year on year/YoY) in the second quarter of 2022. This condition is supported by both consumption and investment.

On the consumption side, the Consumer Confidence Index (IKK) and retail sales continued to grow. The prospect of demand also continues to increase so it becomes an incentive for the industry to increase production.

The increase in demand is also reflected in the Purchasing Manager's Index (PMI) which is still at an expansive level for 11 consecutive months and in July 2022 it was recorded at 51.3. At the same time, Indonesia's inflation is relatively under control at 4.94 percent YoY in July 2022.

From the external sector, Indonesia's resilience is also maintained and increasingly solid despite the pressures of global uncertainty. This can be seen from Indonesia's Trade Balance which continues to record a surplus for 27 consecutive months which is an important capital for maintaining foreign exchange reserves and stability of the rupiah exchange rate.

"Hopefully this collaboration can inspire young entrepreneurs to achieve even better results in the future", concluded Coordinating Minister Airlangga.