Economy Recovering from Coronavirus Impact, Minister Says
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3 December 2020 12:12 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto believes that economic recovery has occurred on two sides. On the demand side, there are indications of improving inflation, and improvement on the production side is seen in the Purchasing Managers' Index (PMI) increase.
Meanwhile, companies are showing positive signs in operations, as demand have started to recover.
"The PC-PEN program and policies have from the start been directed at economic recovery from both sides," Airlangga said in a written statement, Wednesday, December 2.
IHS Markit reported that Indonesia's PMI in November 2020 stood at 50.6, above the 50.0-mark. This indicates Indonesian corporations and industries are moving on an expansive trend, although the gain is still limited.
The manufacturing industry contributed to economic growth by accounting for 19.86 percent of GDP in the third quarter of 2020. Improvements in the industrial sector are considered significant to encourage economic growth.
Airlangga Hartarto said that efforts to boost domestic demand are very important to support the expansion of production capacity and new orders.
"We need a push to increase domestic demand, by providing support to the SME sector and labor-intensive industries, as well as business financing support, fiscal incentives, and regulatory simplification," he remarked.
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