Sri Mulyani Reveals Conditions to Reach 5 Pct Economic Growth in 2021

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani said the control and prevention of COVID-19 and vaccination programs were the principal conditions for the country to attain five percent economic growth next year.

“This depends heavily on how we handle and prevent COVID-19 through health discipline and the vaccination programs next year,” Sri said in her opening speech in the 2020 Business Indonesia Award titled “Resilience in Pandemic” on Monday, 14 December 2020.

The government projected the nation’s economic growth in 2021 would meet its target of 4.5-5 percent.

Sri Mulyani said the government next year would still focus on the handling of COVID-19 and the acceleration of economic recovery, and thus the country’s financial instrument—the 2021 state budget—would still play a key role in boosting the economy.

She added there would be some shifts in the composition of the 2021 state budget, among them in the health sector, due to a ballooning budget for the vaccination programs.

“More than Rp167 trillion is allocated for the health sector, excluding [the budget for] vaccinations. A significant amount of budget is necessary because the coverage of the vaccination must be extensive so as to produce ample immunity,” she said.

She explained the 2021 state budget was also aimed at accelerating the national economic recovery, infrastructure expenditures, food security, infrastructure development in the fields of information, communication and tourism.

In addition, she said, the government would also encourage expenditures on human and productivity development. Sri Mulyani hoped all economic movements next year would not rely solely on the state budget, which is presently undertaking a burdensome task of sustaining Indonesia’s COVID-19-stricken economy.

Read: Vaccine Arrival Does Not Mean Instant Control Over COVID-19

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