Indonesia’s Coordinating Minister for Economic Affairs sees several opportunities for economic recovery in 2021

Jakarta (ANTARA) – Indonesia will have several opportunities that it could leverage to bring about an economic recovery and support the economic growth target of 4.5-5.5 percent in 2021, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said.

“In 2021, it is time to return to work, to develop businesses again, to be optimistic about taking advantage of opportunities for economic recovery,” Minister Hartarto said at the 2021 Indonesian Economic Outlook meet in Jakarta on Tuesday.

The COVID-19 vaccine will be a game-changer for the national economy amid the pandemic and provide an opportunity to improve economic recovery in 2021, he remarked.

“In accordance with the President’s direction, the vaccination can be carried out by the end of January,” he added.

The Indonesian government has imported 1.2 million doses of Sinovac’s vaccine from China and is scheduled to obtain raw materials for another 15 million doses in December, 2020, and 1.8 million vaccine doses in January, 2021.

In addition to the immunization program, Hartarto said, the implementation of the Job Creation Law would also serve as an opportunity to encourage economic recovery in 2021.

The government is currently preparing a list of investment priorities and working on establishing an Investment Management Institution (LPI), which is being supported by a number of countries with an initial capital of up to US$6 billion, he informed.

The Coordinating Minister for Economic Affairs added that other opportunities that could leverage the economy are the food security program, industrial area development, mandatory B-30 program covering 17 million workers, labor-intensive programs, and digital economy development.

“The current development of the digital economy is US$40 billion, whose potential in 2025 is US$133 billion in Indonesia and US$150 billion in ASEAN,” he said.

Signs of economic recovery have begun to appear, such as the strengthening of the Jakarta Composite Index (IHSG), which in December reached the level of 6,100, he noted.

The recovery in the manufacturing sector is also evident in the improvement in the Purchasing Managers’ Index (PMI) of Indonesian Manufacturing, which currently stands at 50.6, he pointed out.

Several sectors that grew during the pandemic will also become growth levers, including agriculture, information and communication, health services, and education, he added.

In terms of commodities, CPO, nickel, and precious metals, which became a safe haven during the pandemic, as well as other opportunities in the export market, including the signing of the RCEP trade agreement between ASEAN countries and trading partners, including China, Japan, Australia and New Zealand, will also aid economic recovery, the minister said.

“Likewise, the cooperation between Indonesia and EFTA in Europe, the Australian CEPA, the Korean CEPA and the extension of the GSP, of course, can encourage an increased limited trade agreement. This cooperation encourages export performance and improves Indonesia’s position in the global value chain,” he added.


Reporter: Dewa W, Azis Kurmala
Editor: Gusti Nur Cahya Aryani