Economic growth in 2022 is estimated to lie around five percent to 5.5 percentJakarta (ANTARA) - President Joko Widodo (Jokowi) is eyeing economic growth of around 5-5.5 percent by 2022, though the government will strive to reach the upper bracket of this band.
"Economic growth in 2022 is estimated to lie around five percent to 5.5 percent. We will try our best to achieve the upper limit of the growth target at 5.5 percent," President Jokowi noted in a speech on the Bill of the State Budget (APBN) for the Fiscal Year 2022 and Financial Notes before the House of Representatives’ plenary session for the 2021-2022 Session Year at the parliament complex here on Monday.
The head of state noted that the estimated economic growth target took into account the highly dynamic developments pertaining to the COVID-19 pandemic.
President Jokowi stressed that the government will mobilize all resources, scientific analysis, and expert views to tackle the COVID-19 pandemic in Indonesia in a bid to maintain, expedite, and bolster economic recovery and social welfare.
The president remarked that the economic growth rate also mirrored the projected strong economic recovery, supported by investment and export growth as a result of the implementation of structural reforms. However, the government should nonetheless stay alert on account of global and domestic uncertainties that can affect economic growth in future.
"Inflation will be maintained at three percent, reflecting an increase in demand, both due to economic recovery and improvement in the people's purchasing power," according to President Jokowi.
In addition, the rupiah is estimated to strengthen by around Rp14,350 per US dollar and the interest rate on 10-year government bonds is estimated to reach around 6.82 percent, reflecting Indonesia's economic fundamentals and the influence of global dynamics.
Furthermore, the price of Indonesian crude oil (ICP) is expected to reach around US$63 per barrel. Oil and gas lifting is estimated at 703,000 barrels and 1,036,000 barrels of oil equivalent per day, respectively.
President Jokowi noted that the government had adopted the theme "Economic Recovery and Structural Reform" in the 2022 fiscal policy. The head of state believes that social and economic recovery will continue to improve to strengthen the foundation and support structural reforms more optimally.
"Structural reforms are very fundamental for the recovery and acceleration of post-pandemic economic growth since Indonesia must grow quickly and sustainably," according to the president.
Hence, productivity must be increased by improving the quality of human resources, supported by more equitable connectivity, and accelerating infrastructure development, including digital, energy and food infrastructure, to encourage industrialization as well as ecosystem support, Jokowi noted.
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Translator: Aditya Ramadhan, Katriana
Editor: Sri Haryati
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