Govt outlines investment as key to economic growth target realization

Govt outlines investment as key to economic growth target realization

Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro during a meeting to draft the national medium-term development planning for the 2020-2024 period in Jakarta on Thursday (Sept 19, 2019). ANTARA/Astrid Faidlatul Habibah/sh

Jakarta (ANTARA) - The government set the investment sector as the main driver to Indonesia’s economic growth target realization by 2024 following the unfavorable global economic conditions that have dampened exports, National Development Planning Minister Bambang Brodjonegoro stated.

Brodjonegoro, concurrently head of the National Development Planning Agency (Bappenas), remarked here on Thursday that the government had prioritized investment and export as the two main sectors to propel the country's economic growth. However, the current inconducive condition of the global economy had undermined its exports.

"When we are speaking about export, we have to see the current unfavorable external condition due to the global economic slowdown. It means the key lies in investment," he affirmed at a meeting on national medium-term development planning for the 2020-2024 period.

The minister stated that an economic growth of 5.05 percent until the second quarter of 2019 indicated that contribution of the investment sector and household consumption to the national economic growth had attained the same level of five percent.

However, the government could not solely rely on household consumption to back its economy since it could not encourage swifter growth but only make it stable.

"If our economy is dominated by household consumption, it will not grow faster but it will grow stable," he explained.

The increase in investment will have a trickle-down effect, such as poverty alleviation and a reduction in unemployment, as investment will create jobs for the people.

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