The COVID-19 pandemic has surely hit the supply chain hard and decreased industrial utilization. Through its 19.9 percent contribution to the national economy, the processing industry sector is the key to boosting Indonesia’s economic growth.
Jakarta (ANTARA) - Economic recovery strategy is focused on the industrial sector that can leverage employment and have high multiplier effects in the economic transformation framework, National Development Planning Minister/National Development Planning Agency (Bappenas) Head, Suharso Monoarfa, stated.

“The COVID-19 pandemic has surely hit the supply chain hard and decreased industrial utilization. Through its 19.9 percent contribution to the national economy, the processing industry sector is the key to boosting Indonesia’s economic growth,” Monoarfa noted during an online event of the 2021 Inspiring Session IDF here on Tuesday.

The disruption triggered by the COVID-19 pandemic has also driven the country to expedite innovations, especially in pharmacy and health equipment, automatization, digitalization, and changes in the pattern of the global supply chain to align with the green development trend.

“The next industrialization strategy is expected to be able to trigger better industrial response and adaptation to challenges and opportunities post-pandemic, so that economic recovery and reform can be expedited as stipulated in the 2021 government’s working plans,” he underscored.

The minister pointed out that in the wake of the COVID-19 pandemic, the national economy had contracted 2.07 percent, thereby leading Indonesia to become a lower middle income country. In fact, Indonesia was categorized as an upper middle income nation, with its per capita GDP above US$4,100 in 2019.

“A significant increase in the economic trajectory is the crucial point to get out of the middle income trap pressure in a bid to achieve the 2045 Indonesian vision as one of developed countries in the world,” the Bappenas hsead pointed out.

Through the 2021 IDF, Monoarfa is optimistic that all stakeholders, such as the government, business players, and public, would actively participate in offering innovative solutions to meet the challenges of industrial development in Indonesia.

The IDF programs, initiated by Bappenas since 2017, foregrounds the interactive sessions aimed at transferring knowledge effectively between speakers and participants. Monoarfa outlined the four schemes of the 2021 IDF: inspire, imagine, innovate, and initiate.

All ideas and recommendations collected during the IDF series will be conveyed at its peak event as inputs in drafting the documents of Indonesia’s development planning.

“We expect that our joint steps would strengthen our determination to realize the vision of social and economic transformation in pursuit of becoming a country, with high level income,” he affirmed. Related news: Economic recovery will depend on COVID control policy: researcher
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