JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara emphasized that the government is still optimistic that Indonesia's economic growth throughout 2021 can be in the range of 3.7 percent to 4.5 percent. He stated this when he was a keynote speaker at the Indonesian Ministry of Finance-Asian Development Bank 2021 International Climate Change Conference (ICCC) webinar.
According to the Deputy Minister of Finance, this target is quite challenging amid the increase in daily cases of COVID-19 which is still in a high trend for the last few weeks. However, the government is said to have prepared a number of strategies so that the projection can be achieved.
"We are increasing the allocation of spending to support the health sector, such as increasing hospital capacity, providing incentives for health workers (nakes), but at the same time the government continues to accelerate the acceleration of vaccination in the community," he said, Thursday, July 22.
The Deputy Minister of Finance added that other steps that are now being taken are through refocusing and reallocating spending that is considered not a priority to more critical sectors.
"We hope that we can still achieve the economic growth target that has been set while taking into account the latest developments that occur, especially in the third quarter," he said.
Furthermore, Sri Mulyani's subordinate also revealed that the government continues to make tax reforms which are part of the spirit of the omnibus law.
“It is important for Indonesia to remain relevant to a globally connected tax system. In the future, one of the agendas prepared by the government is to impose certain levies on carbon emissions,” he explained.
To note, the carbon tax regulation which is currently being discussed by the government and parliament is a strategic issue. The reason is, this is closely related to the state revenue scheme and also more environmentally friendly economic development.
"In the future, we see that industrial development that is in line with environmental aspects is very possible to open up opportunities for green financing and this is in accordance with the spirit of the global community," he concluded.
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