Indonesia's Economic Growth Ranks 2nd in G20, Minister Claims

TEMPO.CO, Jakarta - Indonesia's economic growth is the second-highest among G20 countries, as stated by Coordinating Minister for Economic Affairs Airlangga Hartarto on Wednesday, July 26, 2023.

"We can see that Indonesia's economic growth is higher than other countries, even among the largest countries in the G20. Indonesia's economic growth stands at 5.03 percent, making it the second-highest among them," he said at the National Strategic Projects (PSN) Conference in Jakarta.

Despite the current complex and multiple levels of global economic problems, such as inflation, wars, and the energy crisis, Indonesia's economic position remains quite strong, Hartarto noted.

He also highlighted that Indonesia's Purchasing Managers Index (PMI) is still at an expansive level of 52.7, which is a positive sign for the economy.

Furthermore, to escape the middle-income trap by 2035, the community must take advantage of the demographic bonus that will last for the next 13 years, he added.

Hartarto emphasized that the key to significant economic growth is infrastructure development. Therefore, PSN projects are being prepared comprehensively to support national economic transformation policies in the short and long term.

Regarding short-term policies, PSN projects are being implemented through several programs, including providing incentives to attract investment in special economic zones (KEK), developing industrial estates, and accelerating regional development.

Other programs include the economic equity program, the program to increase food sovereignty through food estates, and the issuance of derivative regulations of Law Number 6 of 2023 concerning Job Creation.

Hartarto informed that for long-term policies, PSNs are implemented by increasing connectivity through toll road projects, railways, airports, ports, and other basic infrastructure.

Additionally, PSNs focus on strengthening national energy security through the provision of oil and gas infrastructure, electricity, and processing refineries, as well as accelerating digital transformation and the production of digital talent.

Minister of Public Works and Public Housing (PUPR), Basuki Hadimuljono, also stated on the same occasion that PSNs are very important to spur infrastructure development in order to enhance Indonesia's economic growth in the future.

"This infrastructure is the foundation for designing economic growth in Indonesia," he added.

ANTARA

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