Economic growth of 4.5 percent to 5.5 percent is quite realistic considering various factors and the low baseline in 2020
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati on Tuesday outlined four factors that could help the Indonesian government attain its economic growth target of 4.5-5.5 percent in 2021.

"Economic growth of 4.5 percent to 5.5 percent is quite realistic considering various factors and the low baseline in 2020," she said at a House of Representatives' meeting here on Tuesday.

Sri Mulyani said economic growth next year will be determined by four factors. First, the successful handling of the COVID-19 pandemic, including vaccine research efforts.

Second, the state of global economic recovery, which will be affected by the handling of the COVID-19 pandemic, geopolitical factors after the US elections, the dynamics of US-China relations, and commodity prices.

Third, the presence of structural reforms to increase business convenience and attract investment.

Fourth, fiscal policy support with a countercyclical pattern, including through the continuation of the national economic recovery program (PEN).

"The government agrees that a comprehensive handling of the COVID-19 pandemic is the key to national economic recovery and restoring economic growth to its natural path,” the minister said.

Therefore, the government has allocated Rp356.5 trillion to sustain the national economic recovery program in 2021, which will be primarily aimed at the supply and distribution of vaccines, she informed.

Not only that, the budget allocation will also focus on social assistance (bansos) to support and maintain the purchasing power of the middle and lower classes, who remain affected by the pandemic, she said.

The funds will also be used to support and revive affected businesses, MSMEs, and corporations, she added. (INE)


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