The government's projection for the 2023 national economy will grow 5.3 percent

 

The government estimates that national economic growth until the end of 2022 will be at 5.2 percent on an annual basis (year on year). Meanwhile, in 2023, the government estimates that the national economy will grow at 5.3 percent.

"In 2023 the forecast is at 5.3 percent according to the state budget. Various world institutions, be it the OECD, IMF, World Bank, ADB, are projecting our economic growth to be between 4.7 to 5.1 percent next year," said the Coordinating Minister for the Economy, Airlangga Hartarto, in a statement at the President's Office after attending the meeting. plenary cabinet led by President Joko Widodo at the State Palace, Central Jakarta, Tuesday (06/12/2022).

Airlangga also explained that inflation is expected to be under control until the end of the year. After previously being at 5.9 percent, 5.72 percent and 5.42 percent, Airlangga estimates that by the end of the year the inflation rate will be in the range of 5.34-5.5 percent.

Meanwhile, regarding the handling of the pandemic, Airlangga explained that the first dose of vaccination had reached 86.8 percent, the second dose was 74.3 percent, the third dose was 28.62 percent, and the fourth dose was around 4 percent. In addition, all districts/cities are at the level 1 Enforcement of Restrictions on Community Activities (PPKM).

"Given the existing situation, the Ministry of Health will conduct another survey and of course with a joint survey the government will take further steps," said Airlangga.

Regarding energy security, Airlangga said that President Joko Widodo gave directions so that next year a planning mechanism for implementing B35 or 35 percent biodiesel would be created. With the implementation of B35, it is hoped that it will reduce dependence on imported fuel oil.

In terms of food, President Jokowi asked that national food reserves be considered and increased for various commodities, be it rice, corn, soybeans, shallots, garlic, chilies, beef, broiler chicken, eggs, consumption sugar, cooking oil, and also Cayenne pepper. The government will also prepare a financing mechanism for Bulog and RSI or ID Food through the Ministry of Finance.

"The government has prepared through the Minister of Finance that the loan value for both Bulog and ID Food is at a certain rate which is lower than the market rate. This mechanism is also being prepared by the government," he explained.

Furthermore, regarding investment, President Joko Widodo asked his staff to speed up investment permits. According to Airlangga, the government currently has a large investment potential of close to US$30 billion.

"Mr President wants permits related to industrial permits, construction permits, Amdal permits, to be granted in a relatively short time," he continued.

Regarding the development of the electric vehicle battery ecosystem to the electricity-based automotive industry, Airlangga said that the government would prepare incentives to ensure that investment would come in. The government believes that this ecosystem will later become the mainstay of the national economy.

"Therefore, related to this ecosystem, we are asked to explore various commodities, be it bauxite, aluminum, or nickel along with the integration of their ecosystem in the form of EV batteries which of course require nickel, cobalt, manganese, and other commodities," he said.

Source of information from : https://www.kominfo.go.id/