The Government Will Look for New Sources Of Economic Growth


The Indonesian government is looking for new sources of national economic growth after the pandemic. These new sources are urgently needed for recovery. This was revealed by the Deputy Minister of Finance, Suahasil Nazara.

“We have to find new sources of economic growth after the Covid-19 pandemic,” said Suahasil at the Bisnis Indonesia Mid Year Economic Outlook 2022 webinar: Indonesia’s Economic Prospects Amid Post-Pandemic Geopolitical Changes on Tuesday (2/8/2022).

The new sources of economic growth, he continued, could not be separated from trends occurring in emerging markets and internationally. Some of the potentials and opportunities that the government will try are as follows.

The first potential, namely the new normal lifestyle or new normal. One example of new sources of growth, he said, was obtained through awareness of healthy lifestyles and the surge in digital technology applications.

Second, new trade and investment maps, through supply chain diversification, initiation of regional supply chains, Indonesia in the strategic global supply chain, and globalization fragmentation.

Furthermore, awareness of the green economy through progressive net zero emission policies, demand for environmentally friendly products, and investments. And lastly, as well as energy and food security

He said the government continues to prepare, think about and organize the necessary policies to maintain energy and food security because food and energy security is one of the sources of new economic growth.

“And of course, some of the supporting tools are accelerating the adoption of new technologies, revitalizing industries with high added value, developing a green economy and strengthening EBT [new renewable energy], and the sustainability of the food estate program,” he said.

On the other hand, Coordinating Minister for the Economy Airlangga Hartarto stated that the government will continue to maintain the economy to grow above 5 percent until the third quarter of 2022 amid global turmoil and uncertainty.

Coordinating Minister Airlangga said if the economy can grow above 5 percent by the third quarter, the overall growth target for this year of 5-5.2 percent will be achieved.

“The second quarter is estimated to be slightly more than 5 percent. If we can maintain it until the third quarter, the figure of 5-5.2 percent by the end of the year can be achieved,” he said at the Mid-Year Economic Outlook 2022 event in Jakarta, Tuesday.

Coordinating Minister Airlangga said this optimism was in line with economic growth which was still driven by the demand side, namely consumption, investment, and exports, which grew positively. Similarly, from the supply side, almost all sectors grew positively in response to increased demand.

In detail, GDP growth according to expenditure in the first quarter of 2022 includes household consumption growing 4.34 percent and consumption of Non-Profit Institutions Serving Households (LNPRT) by 5.98 percent. Government consumption fell 7.74 percent, PMTB grew 4.09 percent, exports of goods and services 16.22 percent, and imports of goods and services 15.03 percent.

“The government’s consumption in the first quarter was relatively negative, but it can be compensated in the third and fourth quarters,” said Coordinating Minister Airlangga.