He made the statement after attending a limited meeting on the “2024 Macroeconomic Framework (KEM) and Points of Fiscal Policy (PPKF).”
The government will strive to boost incoming investment through various efforts and in accordance with a number of regulations, including the Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 regarding Job Creation, he said.
It will also implement Law Number 4 of 2023 on Financial Sector Development and Reinforcement (PPSK) as well as Law Number 1 of 2022 on Regional and Central Government Finance Relations (HKPD) to achieve the investment target, he informed.
Furthermore, the government will accelerate the downstreaming of Indonesia’s natural resources to spur the national economy.
The coordinating minister said that President Joko Widodo (Jokowi) has also instructed his ranks to expedite the development of the domestic electric vehicle industry.
The President is expecting that Indonesia will also create an electric vehicle ecosystem and not just focus on manufacturing raw materials for electric vehicle batteries, such as cathodes or precursors, Hartarto added.
Through this attempt, Indonesia can compete with Thailand and other countries in developing the electric vehicle industry, he said.
During the limited meeting, the government determined a number of macroeconomic assumptions for 2024, namely 5.3 to 5.7 percent economic growth, 1.5 to 3.5 percent inflation, and 6.5 to 7.4 percent 10-year Government Securities (SBN) interest rate.
It also set the domestic oil production target at 592 thousand to 691 thousand barrels per day, and the national oil production target at 1.007 million to 1.058 million barrels of oil equivalent per day for 2024.
Furthermore, the government is expecting the Indonesian rupiah exchange rate to be maintained at Rp14,800 to Rp15,400 per US dollar and Indonesian Crude Price (ICP) to reach US$75 to US$85 per barrel.
Regarding human development, Hartarto said that the government is targeting to realize a poverty rate of 6.5 to 7.5 percent, a Gini ratio of 0.36 to 0.37, as well as an unemployment rate of 3.6 to 4.3 percent.
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Translator: Indra Pribadi, Uyu Liman
Editor: Rahmad Nasution
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