Minister pushes for investment acceleration amid economic growth

Minister pushes for investment acceleration amid economic growth

Screenshot - Coordinating Minister for Economic Affairs Airlangga Hartarto at the online opening of the 2021 Investor Daily Summit in Jakarta, on Tuesday (7/13/2021).

Jakarta (ANTARA) - Coordinating Economic Affairs Minister Airlangga Hartarto encouraged all economic players to capitalize on the economic growth momentum by expediting investment.

"I encourage us to jointly take advantage of the growth momentum by accelerating investment and also continue to support government policies in controlling the pandemic, so that we are able to realize faster national economic recovery," the minister noted in a statement received here on Wednesday.

Hartarto highlighted the government's commitment to supporting investment and business through the Job Creation Law. This commitment is also reflected in the provision of incentives for priority business sectors with certain criteria.

"This policy is expected to increase productive investment that creates new businesses, so that it will open up many job opportunities, and the community is expected to take advantage of the opportunities," he affirmed.

The minister pointed out that the momentum of economic recovery was apparent from the improvement in the Indonesian economy in the first quarter of 2021 during which a mere 0.74-percent contraction was recorded as compared to the corresponding period in the previous year.

"This momentum must be maintained through investment acceleration, so that the economy recovers faster despite current challenges arising from the escalation of COVID-19 cases, especially in the case of the delta variant," he pointed out.

Currently, domestic demand has also improved and has been responded to by a surge in production activity in the business sector, such as the manufacturing, trading, and construction industries. Indonesia's Manufacturing Purchasing Managers' Index (PMI) in June 2021 continued to expand to the level of 53.5.

Indonesia's manufacturing activity is also higher than other ASEAN countries, such as Vietnam, Myanmar, Thailand, and Malaysia. With a spurt in production activity, the negative impact of the pandemic on employment can also be gradually overcome.

Meanwhile, on the external front, Indonesia also benefited from a trade balance surplus logged for 13 consecutive months, supported by rising global commodity prices.

Hartanto accentuated that the increase will offer a positive sentiment for Indonesia's export-import activities in future. At the same time, foreign capital inflows have also returned, while a stable level of the current account deficit will offer a solid foundation for the resilience of Indonesia's external sector.

"With such various economic policies, especially tax incentives, including the relaxation of the value added tax (VAT), the government sees that recovery can still continue and is expected to still grow seven percent in the second quarter of 2021," he stated. Related news: Indonesia, Singapore discuss investment, green energy
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