"Manufacturing activities and the demand for KUR (People's Business Credit) financing will start to increase in August 2021," Hartarto stated during the UOB Economic Outlook 2022 webinar monitored here Wednesday.
The minister noted that until August 20, 2021, the government's fund placement program in banks had encouraged credit distribution to reach a total of Rp419.78 trillion. These credits were distributed by the Association of State-Owned Banks (Himbara), Bank Syariah Indonesia, and Regional Development Banks.
As much as 57.53 percent of the total credits were channeled to Micro, Small, and Medium Enterprises (MSMEs).
In addition, resilience of the external sector was still maintained, as was apparent from the increase in exports, so the trade balance was in surplus for 15 months. Foreign exchange reserves in July 2021 were also relatively high at US$144.8 billion.
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The improving economic conditions had made the government optimistic that the economy can return to expansive growth in the fourth quarter of 2021. The economy is projected to grow in the range of 3.7 to 4.5 percent in 2021.
Meanwhile, in line with expectations of a global economic recovery, Indonesia's economic growth in 2022 is projected to reach 5.2 percent.
“Achieving the economic growth target will depend on the community's participation in increasing the effectiveness in controlling the COVID-19 pandemic. The government continues to strengthen pandemic control from upstream to downstream to ensure more effective prevention and treatment," he affirmed.
The government will continue to accelerate COVID-19 vaccination; boost discipline in implementing health protocols; increase testing, tracing, and treatment; and control community mobility by limiting community activities.
"In September, the government targets two to 2.3 million more people per day to be vaccinated, so that it can support the target to vaccinate 208 million people by the end of 2021," he stated.
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