5.5% economic growth possible in 2022: Finance minister

5.5% economic growth possible in 2022: Finance minister

Finance Minister Sri Mulyani submitted the government's response to the general view of the House of Representatives (DPR) faction on the 2022 State Budget Bill and its Financial Note to House Speaker Puan Maharani in Jakarta, Tuesday (August 24, 2021). (ANTARA/Agatha Olivia)

With vaccinations being expanded and the handling of the pandemic in Indonesia continuing to improve, the public and business actors will be more confident in carrying out activities that can encourage economic growth
Jakarta (ANTARA) - Economic growth between 5 and 5.5 percent in 2022 could potentially be achieved, Indonesian Finance Minister Sri Mulyani Indrawati has said.

"This possibility considers various factors comprehensively," said Indrawati at the Plenary Session of the House of Representatives (DPR) here, Tuesday.

Various factors that influenced this assumption were the improving outlook for the global economy and trade, as well as the achievement of domestic economic growth in the second quarter of 2021, the minister said.

The government and the House are both optimistic that the acceleration of economic recovery will be stronger in 2022.

Such optimism is in line with the improving outlook for the global economy and trade, although the speed of recovery among countries will depend on efforts to control COVID-19 cases, including access to and implementation of vaccinations, as well as adaptation to the new normal in each country.

"With vaccinations being expanded and the handling of the pandemic in Indonesia continuing to improve, the public and business actors will be more confident in carrying out activities that can encourage economic growth," the minister said.

Achieving economic growth in the second quarter of 2021, which has reached 7.07 compared to the previous year, indicated that a strong economic recovery is very likely if COVID-19 cases can be controlled, she believed.

The increase in COVID-19 cases that occurred in early mid-2021 is an important lesson for the government to further strengthen efforts to control the transmission of the pandemic so that the recovery momentum can resume.

Although the recovery momentum increased optimism, the government has also recognized the need for preventive measures against potential risks, both caused by the development of COVID-19 cases and other external factors, including global geopolitical developments, the minister said.

Therefore, the acceleration of economic growth in 2022 will also be supported by ongoing structural reforms, she emphasized.

"The implementation of the Job Creation Act is expected to have a positive impact on investment performance in accelerating economic growth," the minister remarked.

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