"This year, we hope that every demand aggregate element starts to enter the positive zone. Hence, the state budget will not work alone, but together with other indicators and demand variables," she added at the opening of the ISEI Congress XXI, held virtually here on Tuesday.
She said she is optimistic that the demand side will experience positive growth along with the Purchasing Managers' Index (PMI) that remained expansive at 53.5 in June 2021.
On the global scale, the manufacturing industry's global performance has also shown an upward trend compared to last year, she noted.
"This means every nation's economy has started to move, which will create a demand for our export and, of course, capital flow for investment," Indrawati explained.
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However, the finance minister still cautioned about the spread of COVID 19. Last month, the spread of the Delta variant compelled the government to slam the emergency brakes in the form of public activity restrictions (PPKM), she said.
This resulted in the lowering of PMI to 40.1 in July 2021, based on IHS Markit's report, she noted.
"Even so, in August (2021), we have seen that there is a reversal of direction after we face PPKM. Citizens' mobility has started to increase, which raise consumption activities," Indrawati remarked.
The minister said that she will continue to use the state budget to control COVID-19 and recover the economy.
This will be done by tightening the implementation of the health protocols, vaccinations, raising tracing, testing, and treatment, as well as distributing social aid to the 50.4 percent of the population that is most economically vulnerable to the pandemic's impact, she elaborated.
"At the moment, the realization of the National Economic Recovery Program (PEN) has reached 43 percent from the budgeted Rp326 trillion. There are still four months ahead to continue its distribution," Indrawati asserted.
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Translator: Sanya Susanti, Fadhli Ruhman
Editor: Suharto
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