"These fundamentals are sufficiently strong to say that with these assumptions, our economy in 2021 will be better than last year," Hartarto noted in an official statement received in Jakarta, Tuesday.
The minister affirmed that the five-percent growth target will be achieved in accordance with several international institutions projecting Indonesia to be in the positive zone this year, such as the World Bank’s forecast of 4.4 percent, the IMF’s projection of 6.1 percent, and the ADB predicting 5.3 percent.
According to Hartarto, the first indicator is the public’s confidence about consumption in line with the purchasing power that contributes to some 58 percent of the gross domestic product (GDP).
"Currently, the confidence level has increased. Public consumption has shifted," he noted.
Moreover, the public's confidence in consumption will be further encouraged by the government's plan to vaccinate from mid-January 2021 to mid-quarter I-2022.
The vaccination, currently awaiting the Food and Drug Monitoring Agency’s (BPOM’s) issuance of Emergency-Use Authorization and the Indonesia Ulema Council’s (MUI’s) issuance of a halal certificate, is believed to be one of the supporters to attaining the growth target of 4.5 percent to five percent.
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The next indicator is that in early January, the composite stock index (IHSG) had returned to the level of around 6,100, and the rupiah had strengthened to a level of 13,890 per US dollar on January 4, 2021, thereby resulting in positive optimism.
Furthermore, the Manufacturing Purchasing Managers’ Index (PMI) had reached 51.3, and the figure had continued to remain consistent.
Furthermore, Airlangga pointed to the difficulty in finding containers that also mirrored the continued increase in Indonesia's exports, so it was a positive signal for the national economy.
Another indicator was a rise in the prices of commodities that are Indonesia's mainstay products, such as palm oil, nickel, copper, coal, and gold that are relatively high.
"If this commodity is encouraged by good downstreaming, it can become a lever for the economy to grow," he affirmed.
Moreover, Hartarto stated that the investment climate in 2021 was also expected to improve, including through the formation of a government regulation as a derivative of the Job Creation Law that will become a game changer for Indonesia.
"We see that in January or throughout 2021, our state budget is designed to encourage economic growth at five percent," the senior minister stated. Related news: Finance minister again revises growth forecast to minus 2.2-1.7 %