Structural reforms to boost economic growth: Finance Minister

Structural reforms to boost economic growth: Finance Minister

Finance Minister Sri Mulyani Indrawati attends a Central Development Coordination Meeting (Rakorbangpus) in Jakarta on Thursday (April 29, 2021). (ANTARA/Astrid Faidlatul Habibah/am)

Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati has said that the structural reforms being carried out by the Indonesian government are expected to lead to high economic growth of above 6 percent by 2025.

"Indonesia's economic growth is expected to increase with the contribution of structural reforms," she stated at the Central Development Coordination Meeting (Rakorbangpus) in Jakarta on Thursday.

The structural reforms cover five strategic policies on human resource development (HR), infrastructure development, bureaucratic reform, simplification of regulations, and economic transformation, the minister informed.

She said the success of structural reforms would shift the trajectory of economic growth and accelerate growth to above 6 percent.

According to Indrawati, without structural reforms, economic performance will return to the business as usual (BAU) level of around 5 percent and lead to a productivity loss of Rp2,301 trillion in 2021-2025.

However, through appropriate structural reforms, economic growth could touch 5.8 percent in 2022 and 5.3 percent this year, she said.

"This structural transformation can support or contribute to higher economic growth, especially in the investment and export factors," she added.

As a result of the reforms, household consumption is expected to grow 5.2 percent (yoy) in 2022, while consumption of Non-Profit Institutions Serving Households (LNPRT) is forecast to reach 7.2 percent (yoy), government consumption 5.2 percent (yoy), investment 6.6 percent (yoy), exports 6.8 percent (yoy), and imports 6.1 percent (yoy), Indrawati said.

"Through reforms, the acceleration of investment growth is expected to reach above 7 percent (in 2025) as well as exports. This can support economic growth of above 6 percent without having to burden the state budget,” she added. (INE)

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