The government has agreed that a thorough handling of the COVID-19 pandemic has become key for economic recovery and to return economic growth to its natural track
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati, ahead of the plenary session of the House of Representatives (DPR), identified key measures that will help the government achieve its target of 4.5-5.5 percent economic growth in 2021.



"The government has agreed that a thorough handling of the COVID-19 pandemic has become key for economic recovery and to return economic growth to its natural track," Indrawati said here on Tuesday.



According to her, a recovery in domestic demand, especially in consumption and investment, would boost national economic growth.



The government's commitment to maintain the inflation rate is also expected to revive public confidence and encourage people to resume normal economic activities.



Meanwhile, gross fixed capital formation (PMTB) is expected to increase sharply with continuity in infrastructure development and structural reform, which will improve ease of doing business and attract investment, the minister stated.



She said exports are expected to increase, although that would still depend on global economic recovery.



Exports would be encouraged through expansion to potential destination countries and product diversification, she explained. Meanwhile, imports would be directed at meeting domestic demand, especially for raw materials and capital goods, she added.



In terms of supply, the government believes that 2021would be a year of recovery and provide momentum for structural reform to boost industry productivity and competitiveness.



The manufacturing industry sector is expected to serve as an engine of growth in 2021, with the support of various recovery policies and revitalization efforts.



Improvement in digital infrastructure is also predicted to boost sectors linked to digital economy and advanced technology usage, such as communication and information, financial services, retail services, and micro, small, and medium-scale enterprises (MSME).



In addition, the government will continue to prioritize food and energy resilience “as the basis to drive the national economy”, Sri Mulyani asserted. (INE)


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Translator: Astrid FH, Sri Haryati
Editor: Fardah Assegaf
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