By: Nurmana Syafitri )*
The government is optimistic in maintaining and recording the positive trend of economic growth that has been achieved in recent years. Stable and positive economic growth is an indicator of the government’s success in managing the country’s economy.
The positive trend of economic growth can be seen from the increase in Indonesia’s Gross Domestic Product (GDP). GDP is one of the main indicators in measuring a country’s economic growth. In 2020, despite the COVID-19 pandemic which had a negative impact on the global economy, Indonesia managed to record economic growth of 2.97 percent. Even though this figure is lower than the previous year, it still shows a positive trend in economic growth.
The Central Statistics Agency (BPS) recorded that the Indonesian economy grew 4.79 percent (2015), 5.02 percent (2016), 5.07 percent (2017), 5.18 percent (2018), and 5.02 percent (2019) . Then, minus 2.07 percent (2020), 3.69 percent (2021), 5.31 percent (2022), and 5.04 percent (quarter IV/2023).
Minister of Finance (Menkeu) Sri Mulyani Indrawati emphasized optimism regarding Indonesia’s economic growth prospects in 2024. At a conference in Jakarta, she expressed her belief that the Indonesian economy could grow by 5 percent in the coming year.
The state treasurer said the projected economic growth of 5 percent this year is supported by strong domestic demand from both the government, household and non-profit institutions serving households (LNPRT) consumption.
This positive economic growth projection is supported by a number of factors, including sustainable fiscal policy, maintained macroeconomic stability, and efforts to recover the economy after the COVID-19 pandemic. Sri Mulyani also highlighted the importance of structural reforms being carried out by the government to increase competitiveness and economic productivity.
However, the Minister of Finance also emphasized the importance of being alert to risks that may arise, both from within and outside the country. Changes in global market dynamics, fluctuations in commodity prices, and uncertainty related to foreign policy can affect Indonesia’s economic performance.
In this context, the Minister of Finance emphasized the importance of policies oriented towards controlling inflation, developing infrastructure and increasing investment in order to encourage inclusive and sustainable economic growth.
Apart from that, the Minister of Finance also underlined the need for support from various parties, both from the private sector and society, to realize this ambitious economic growth target.
Thus, through synergy between government policies, community readiness, and support from the private sector, it is hoped that Indonesia can face existing challenges and achieve stable and sustainable economic growth by 2024. One of the factors that supports the positive trend of economic growth is government policy. proactive in dealing with the impact of the pandemic. The government has launched various economic stimuli, such as the National Economic Recovery Program (PEN), which aims to support sectors directly affected by the pandemic. This stimulus includes social assistance, financing for micro, small and medium enterprises (MSMEs), as well as tax incentives for certain sectors.
The government has carried out structural reforms to increase Indonesia’s economic competitiveness. Some of the steps taken include tax reform, simplifying regulations, and increasing investment in the infrastructure sector. These steps aim to create a conducive investment climate and encourage long-term economic growth.
Apart from government policies, the real sector also plays an important role in maintaining the positive trend of economic growth. The industrial, agricultural and service sectors are sectors that make a significant contribution to Indonesia’s economic growth. Increasing production and exports of manufactured products, diversification of agricultural products, as well as developing service sectors such as tourism and information technology, are the main focuses in driving economic growth.
The government has also taken steps to increase the competitiveness of the real sector. One way is through an infrastructure development program which includes the construction of roads, ports, airports and energy. Adequate infrastructure will facilitate the mobility of goods and services, as well as increase connectivity between regions. This will encourage real sector growth and create new jobs.
Apart from that, the government also continues to strive to improve the quality of human resources through education and training programs. A quality workforce will increase productivity and competitiveness of the real sector. Education and training tailored to market needs will also help reduce the gap between workforce qualifications and industry needs.
In order to maintain the positive trend of economic growth, the government also needs to pay attention to other aspects, such as controlling inflation, financial stability and environmental protection. By maintaining a balance between economic growth and environmental sustainability, the government can create sustainable economic growth and provide long-term benefits for society.
Overall, the government is optimistic in maintaining and recording positive trends in Indonesia’s economic growth. Through proactive policies, structural reforms and sustainable real sector development, the government hopes to create inclusive and sustainable economic growth. In facing global challenges, the government remains optimistic in facing them and maintaining the country’s economic stability.
)* The author is a student from Bandung living in Bogor