Economic growth can exceed 5.3% if govt hikes spending: Hartarto

Economic growth can exceed 5.3% if govt hikes spending: Hartarto

Coordinating Minister for Economic Affairs, Airlangga Hartato, at the ‘2023 BUniverse Economic Outlook’ webinar on Tuesday (February 14, 2023). (ANTARA/Sanya Dinda/FR)

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has said he is optimistic that national economic growth will cross 5.3 percent annually, or be higher than the economic growth recorded in 2022, if government spending is increased.

"Yesterday, the government spending is relatively negative, if it is pushed, economic growth can be higher than 5.3 percent," he said during the “2023 BUniverse Economic Outlook” webinar on Tuesday.

To encourage economic growth, the government has created several policies, such as encouraging the implementation of low carbon economic activities through carbon trade.

"Within the Financial Sector Development and Strengthening Law (UU P2SK), carbon trade is included in the Indonesia Stock Exchange, we are preparing in that direction," he informed.

"The Financial Service Authority's (OJK's) commissioned will also be added specifically to handle carbon trade," he added.

Infrastructure development in Nusantara capital city (IKN) will also be continued with the expectation that it will support economic growth.

Moreover, the government will continue to downstream natural resources-based commodities, not only nickel, but also other commodities such as bauxite and tin.

This will be undertaken through the policy within the P2SK Law that allows banks to provide bullion services.

The government is also optimistic that economic growth can be expedited through the Government Regulation in Lieu of Law (Perpu) No. 2 of 2022 on Job Creation, which is expected to anticipate global economic uncertainty.

"With this Perpu, legal certainty can exist. We can once again create government regulations that were prohibited to create," he said.

During the webinar, Energy and Mineral Resources Ministry official Dadan Kusdiana informed that the discussion on the follow-up of the funding commitment for the Just Energy Transition Partnership has reached the finalization stage.

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