TEMPO.CO, Jakarta - The Indonesian government is pursuing the target of economic growth at 5.2 percent in 2019. However, the projected growth is hindered by various challenges, including the global economic slowdown, trade war, and commodity prices that remain volatile.
Finance Minister Sri Mulyani Indrawati said the government focuses on strategies to create a supportive investment climate. One of the efforts is issuing policies, such as omnibus law.
"Investment is critical, and President Jokowi sees it as a starting point that requires attention. Because the economy cannot grow above 7 percent if it only depends on government funds," said the minister during the 2019 FT-AAIB Summit at Grand Hyatt, Central Jakarta, Tuesday, November 26.
According to her, the government eyed the economic growth of at least 7 percent, while presently, it is still at around 5 percent. Throughout the third quarter of 2019, Indonesia's economic growth recorded at 5.02 percent.
The state treasurer further explained that the country’s investment growth tends to stuck at 5-7 percent, especially after the 2008 global financial crisis. So the government must put high concerns on investment growth.
The former managing director of the World Bank said the growth must not only be healthy but also sustainable, so the government also needs to conduct more structural regulation reforms.
"This is basic to achieve investment and economic growth. The Indonesian government will carry out investment policy reforms, and this subject is the concern of President Jokowi," Sri Mulyani said, adding that her side will also focus on improving the balance of payments.