We will also utilize the momentum of the Indonesian G20 Presidency in 2022 to encourage economic recovery and transformation
Jakarta (ANTARA) - Strong coordination and swift response from local governments were deemed paramount to maintaining the momentum of economic recovery, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.

"Strong coordination and quick response from all parties, including local governments, is needed to maintain the momentum of our national economic recovery," Hartarto noted in an official statement here, Monday.

The minister later remarked that the world was currently facing various challenges in the form of COVID-19, conflict, climate change, commodity prices, and cost of living, which the United Nations calls "The Perfect Storm." The World Bank lowered its forecast for global economic growth in 2022 to 2.9 percent, from the earlier 4.4 percent, mainly as a result of the geopolitical conflict between Russia and Ukraine.

Nevertheless, Indonesia's external sector indicators still show solid resilience. This is reflected in the trend of a trade balance surplus for 25 consecutive months and the ratio of Indonesia's external debt to GDP at a safe level.

The minister affirmed that the improving economic outlook will help maintain public and investor confidence to encourage national economic activities, even in the current state of global uncertainty.

"We will also utilize the momentum of the Indonesian G20 Presidency in 2022 to encourage economic recovery and transformation," he remarked.

In the midst of various risks of escalating global uncertainty, the government continues to conduct COVID-19 Handling and implement the National Economic Recovery (PEN) Program. Through the PEN program, the government pays serious attention to the Micro, Small, and Medium Enterprises (MSME) sector. Increasing access to financing is one of the strategies to develop MSMEs, including through the People's Business Credit (KUR) financing program.

"We really laud the role of the regional heads for their support for the distribution of various KUR schemes in their respective regions in 2022. The total realization of national KUR distribution until May 31, 2022, had reached Rp147.7 trillion, or 39.6 percent of the target given to 3.18 million debtors," Hartarto stated.

In order to increase agricultural productivity, the government has issued a KUR program for the agricultural sector, with a ceiling of Rp90 trillion, and Rp46.6 trillion, or 51.8 percent of the target that has been disbursed.

Meanwhile, the government will continue to implement the National Strategic Project Program (PSN) in 2022 to develop infrastructure for promoting economic recovery, he stated.

Since 2019, the public has benefited from the operation of several PSN infrastructures, such as the Palapa Ring Broadband project that increased access to network connectivity to more than 500 districts and cities in Indonesia, the operation of the 543-km Trans Sumatra Toll Road as part of the efforts to accelerate the development of Sumatra, the construction of 18 strategic dams to improve food security, as well as the operation of a Clean Water Supply System that served more than two million people.

"In order to optimize PSN development, we hope each region will identify a leading sector with some potential to leverage the economy and support the optimization of National Strategic Projects, especially at the district and city level," Hartarto stated.

Some examples to optimize PSN in districts and cities can be seen in the form of industrial development, tourism and economic zones along the Trans Sumatra and Trans Java toll roads, widening regional roads around the exit access of the PSN toll road, as well as support in accelerating the issuance of permits, land acquisition for regional government assets, cash for village land, and other administrations.

Translator: Kuntum Khaira R, Resinta S
Editor: Fardah Assegaf
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