Indonesia’s Ministry of Finance has just released forecasts that the trend of positive economic recovery in the fourth quarter of 2020 will continue to take place this year, amidst some signs of improvement in some indexes.
Southeast Asia’s largest economy fell only 2.19% in the fourth quarter of 2020 compared with a 3.49% decline recorded in the previous quarter.
Along with that, some indicators have shown signs of improvement in 2021, such as the Purchasing Managers’ Index (PMI), which increased to 52.2 points in January 2021 from 51.3 points in December. 2020.
Speaking to the media on February 5, Head of the Finance Policy Department of the Ministry of Finance, Mr. Febrio Kacaribu, emphasized that this is the highest PMI increase in the past six years and public confidence is also continuing. positive trend.
Despite some forecasts showing uncertainty over the complicated developments of the COVID-19 pandemic and the progress of the implementation of the national immunization program, the Indonesian Ministry of Finance still forecasts that the economic growth The country will return to pre-pandemic levels and reach around 5% this year.
According to Mr. Kacaribu, the situation Indonesian economy showing signs of recovery and on the right track. Performance will be accelerated at a faster rate, especially with the immunization program launch that is underway in a measurable and well-planned manner.
[Nguy cơ mất lợi thế cạnh tranh khi Indonesia bỏ qua năng lượng tái tạo]
Mr. Kacaribu said the Ministry of Finance will ensure that strong fiscal policies in 2020 will remain and operate as a “counter-cyclical” tool in 2021, reflected in the budget deficit up to 5.7% of Gross Domestic Product (GDP).
In addition, the Government of Indonesia will continue to focus on implementing the National Economic Recovery Program (PEN) in 2021 by supporting households or the business sector, especially microenterprises, small and medium (MSME).
Accordingly, PEN will continue to ensure effective treatment of the epidemic of acute respiratory infections COVID-19, maintain people’s purchasing power and stimulate business recovery.
Earlier on Feb. 3, Indonesian Finance Minister Sri Mulyani Indrawati said the country would spend 619 trillion rupiah ($ 44.2 billion) for PEN in 2021, up from 553,090 billion rupiah announced yesterday. January 26 and nearly equal to the PEN ceiling in 2020 of 659,200 billion rupiah./.