Indonesia succeeds in handling COVID-19 through unusual steps: VP

Indonesia succeeds in handling COVID-19 through unusual steps: VP

Vice President Ma'ruf Amin speaks at the opening of the 14th Asia Pacific Tax Forum in Jakarta on May 3, 2023. (ANTARA/Desca Lidya N/rst)

Jakarta (ANTARA) - Indonesia was successful in dealing with the COVID-19 pandemic through unusual steps taken by the government, according to Vice President Ma'ruf Amin.

"Our success in handling the pandemic is due to our courage in taking unusual steps in an unusual situation," he stated in Jakarta on Wednesday.

Amin made the statement at the opening of the 14th Asia Pacific Tax Forum themed "Building the Indonesian Sharia Economy in the Middle of Global Economic Dynamics."

He then outlined the unusual steps taken by the government, such as the reform in policies and legislation in the economic sector, including the Job Creation Law, the Law on Harmonization of Tax Regulations, and the Law on Development and Strengthening of the Financial Sector.

He also noted that this year's Ramadan and Eid al-Fitr could be celebrated in better economic conditions.

"Even though the global economy is slowing down, Indonesia is estimated to be one of the countries that is still capable of growing in 2023," he remarked.

He added that the International Monetary Fund (IMF) projects that Indonesia's economy will grow in the range of five percent year-on-year this year.

Meanwhile, the Asian Development Bank's (ADB's) projection shows that economic growth in the Asia-Pacific region has increased, from last year's projection of 4.2 percent in 2023 and 4.8 percent in 2024.

Asia's contribution is even expected to reach 70 percent of the global economic growth in 2023, Amin added.

According to the vice president, tourism and remittance transactions in various countries help to boost the economy, along with the easing of restrictions due to the pandemic.

"The government sees that this momentum must be responded to in an agile and wise manner, especially to encourage trade, investment, productivity, and build economic resilience, both nationally and regionally," he remarked.

Moreover, he said that Indonesia continues to increase its strategic role in various regional, multilateral, and international forums, especially when the global economy is under pressure due to the pandemic and various disruptions.

After the success of the G20 Presidency, Indonesia is chairing ASEAN this year, with the hope of becoming the engine of economic growth in the region, he said. 

"We hope we can increase the ease of investment and create the widest possible employment opportunities, as well as support Indonesia's economic recovery efforts," he remarked.

In addition, the government continues to strengthen the downstream industrial sector to build a strong and globally competitive industry.

Infrastructure development will also be accelerated, including the construction development of the new capital city (IKN) Nusantara, he added.

As a country with a Muslim-majority population and a wealth of diverse resources, Indonesia has immense opportunities to become a leading country in the development of Islamic economics and finance at the global level, he said.

"The contribution of the Islamic economy and finance to domestic development is quite significant," he explained.

Amin said that the halal value chain (HVC) as the priority sector is estimated to grow 4.5-5.3 percent this year as the national economic recovery continues.

Overall, the HVC priority sectors that include agriculture, halal food, Muslim fashion, and Muslim-friendly tourism are recorded to be able to support more than 25 percent of the national economy.

Meanwhile, the contribution of State Sharia Securities (SBSN) to development financing was also quite significant.

Since being issued in 2013, SBSN has supported productive financing for 3,593 projects, with a total financing value of Rp173.8 trillion (around US$11.8 billion), he noted.

"With the huge potential that can be explored and the contributions that have been made, the Islamic economy and finance in Indonesia can be developed further," he stated. 

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