Three Ways That The Government Can Do To Encourage Economic Growth In The Remainder Of This Year

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad said that the achievement of economic growth in the third quarter of 5.72 percent was completely beyond predictions and should be appreciated. I think in the third quarter, the best year effort factor was very large. At that time we experienced a mobility index jump, from negative, now it is quite high," said Tauhid, Tuesday, November 8, evening. With the success of the government in dealing with the pandemic, continued Tauhid, people moved to also follow the economic movement. According to him, there are two sectors that drive economic growth, namely transportation and warehousing. "Where tourists start to enter and shopping needs continue to increase," he said. Even so, Tauhid warned that the predicted challenges in the fourth quarter would be heavier. "The rest year effect was not felt, so the impact of the increase in prices began to be felt by the public," said Tauhid. Indef himself projects 5.3 percent economic growth in the upcoming Quarter IV.

If the government wants to set a record again, there are three things that can be done. First, accelerate capital and goods spending. "There needs to be a strategic breakthrough, with a very limited time in two months it can be completed, otherwise a large SILPA is meaningless to people in need," said Tauhid.

Second, the more moderate adjustment of Bank Indonesia's interest rates follows the development of inflation which is strongly affected by global conditions. The last one, so that indeed the economic slowdown does not occur, it is necessary to strengthen the domestic market for a variety of products that have competitiveness in the global market and accelerate the import substitution industry amidst the strong flow of imports of various industrial products, Tauhid said. Previously, Coordinating Minister for the Economy Airlangga Hartarto, said that domestic economic recovery continues to move rapidly amid the ongoing global economic slowdown. This can be seen from the latest Central Statistics Agency (BPS) report which recorded economic growth in the third quarter reaching 5.72 percent. These various efforts are expected to be our steps to avoid a global recession in 2023. OECD, IMF, EDB, and World Bank predict Indonesia's economic growth at 4.8-5.1 percent, meaning that some institutions also agree with Indonesia that Indonesia can become a bright spot in the dark. So it can still be out of recession next year, "said Coordinating Minister Airlangga.