Ministries should increase synergy to encourage economic growth

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Jakarta (ANTARA) – The Coordinating Minister for Economic Affairs, Airlangga Hartarto, has affirmed that increasing synergy between ministries can facilitate sustainable economic growth.

“I am optimistic that policies in the commercial sector will continue to be improved and well managed and in synergy with other ministries. We want to encourage sustainable economic growth,” Hartarto noted in a statement on Thursday.

The Minister insisted on strong coordination to respond to the various economic challenges in 2022. A quick response from all parties is considered crucial to maintain the momentum of the national economic recovery.

Hartarto affirmed that the trade sector has shown strong resilience in 2020 and 2021. To this end, the government will continue to push the trade balance to maintain a steady surplus, as has happened for 21 consecutive months since May 2020. All components of exports by sector increased in January 2022, with a total increase of 25.3% (year-on-year).

“In terms of exports in January 2022, we see an increase compared to January last year. This situation certainly shows that the composition of our exports has started to shift from primary commodities to industrial products,” said- he explained.

At the same time, imports of capital goods and raw materials increased at a faster rate than those of consumer goods. Machinery and mechanical equipment and their parts will become the main imported products in January 2022. This indicates that the need for factors of production continues to increase due to the increase in production activities in line with changes in mobility which trigger a increased demand.

“The government has decided to continue to encourage the national economic recovery in 2022 at 5.2% while remaining attentive to risks, both global and domestic,” he noted.

The National Economic Recovery Program (PEN) also continues to focus on direct support to the community through job creation and social protection. At the same time, the PEN program will also boost the performance of micro, small and medium-sized enterprises (MSMEs) and cooperatives through business incentives and financial support.

In addition, the small business credit limit (KUR) for 2022 has increased by 30% compared to last year. Interest is also subsidized by 3% until the end of the year, Hartarto noted.

“This is an opportunity to boost the economy of MSMEs, which according to the data are mainly engaged in the commerce sector,” he added.

Regarding the month of Ramadan and Eid al-Fitr, the government also continues to maintain food price stability. The government is committed to keeping volatile food inflation within the range of 3-5% (year-on-year).

“The different strategies, the optimization, but also the digitization from upstream to downstream are very important. This includes strengthening interregional cooperation,” he said.

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