Speaking at a press conference after a plenary cabinet meeting at the Presidential Office, Jakarta, on Wednesday, she said that she expected new normal activities to significantly restore household consumption, which expanded around 2.02 percent in 2021.
"So, if there is a new normal activity, we hope that the recovery in consumption will support Indonesia's economic growth," Indrawati added.
The plenary meeting was held to discuss COVID-19 handling and the Government Work Plan (RKP) for 2023.
In 2023, the government will prepare the budget very carefully while taking into account the pressure from the COVID-19 pandemic, the minister informed. The government is hoping that COVID-19 will subside and become endemic or the normal situation will be restored, she added.
To optimize the impetus for growth, the government will utilize sources of growth that do not only depend on the state budget, such as contributions from banking and capital market financing, Indrawati said.
"Consumption, investment, exports have increased quite high and also come from financial institutions such as banks," she noted.
Related news: Household consumption seen contributing 54% to economy in 2022
According to the Minister of Finance, current banking liquidity is very adequate, as reflected in third-party Funds (DPK), which have reached Rp7,250 trillion, and the loan to deposit ratio (LDR), which is pegged at just 77 percent.
The high growth in third-party funds (DPK) and low growth in the loan to deposit ratio (LDR) indicate the large financing space for banks, but this is not yet optimal to boost the national economy, she explained.
“Secondly, the source of growth also comes from the capital market, the value of the stock and bond markets. The stock market has reached Rp7,232 trillion and so far, it is up 3.77 percent, bonds have reached Rp4,718 trillion, up 9.65 percent," the minister noted.
Sources of funding from the capital market can be a source for economic recovery, she said.
“Companies can conduct an IPO (initial public offering), rights issue (issuance of new shares), or issue bonds. This is because we have 7.5 million domestic investors," the Finance Minister added.
Related news: Indonesia's economy grew 5.02 percent in 2021 fourth quarter: BPS
Translator: Indra AP, Azis Kurmala
Editor: Suharto
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