8-8-2023 (JAKARTA) Amid the backdrop of a challenging global economic landscape, Indonesian Finance Minister Sri Mulyani underscored the nation’s remarkable progress, highlighting how Indonesia has managed to thrive while other countries’ economies falter.
Minister Sri Mulyani pointed to a significant milestone – an impressive economic growth rate of 5.17 percent achieved in the second quarter of 2023.
In a statement posted on her official Instagram account @smindrawati, she applauded this achievement, particularly in contrast to the economic slowdown experienced by many other nations.
This accomplishment is not an isolated incident; it contributes to Indonesia’s streak of maintaining an economic growth rate exceeding five percent for seven consecutive quarters.
Minister Sri Mulyani then delved into the factors that have been pivotal in driving Indonesia’s economic growth. She emphasized the substantial growth of household consumption, reaching 5.23 percent year-on-year (yoy). The government’s effective efforts to curtail inflation have safeguarded people’s purchasing power and bolstered consumer confidence, culminating in this achievement.
Eid al-Fitr festivities and the distribution of Holiday Allowances (THR) also played a role in boosting household consumption, further aiding economic growth.
Another driving force was investment, which surged by 4.63 percent yoy, highlighting the country’s commitment to fostering a conducive investment climate.
Furthermore, the Finance Minister highlighted the noteworthy increase in government spending from the state budget, which escalated by 10.62 percent yoy. This augmented financial activity is poised to amplify economic dynamics in the country.
Addressing external trade, Sri Mulyani acknowledged that exports had contracted by 2.75 percent, an outcome attributed to the weakened global economy. Conversely, imports demonstrated a decrease of 3.08 percent, primarily due to the impact of working days.
Sri Mulyani also drew attention to the well-distributed regional growth across Indonesia. Java Island achieved a growth rate of 5.18 percent yoy, followed by Sumatra at 4.90 percent yoy, Kalimantan at 5.56 percent, Sulawesi at 6.64 percent, Bali and Nusa Tenggara at 3.01 percent, and Papua at 6.35 percent.
This geographical balance in economic progress is fortified by the extensive development of infrastructure, promoting equitable advancement throughout the nation.
Nevertheless, Minister Sri Mulyani underscored the need to sustain this economic momentum, emphasizing critical priorities such as job creation, unemployment reduction, poverty eradication, stunting prevention, inequality reduction, and the establishment of a just and fair welfare system.
In closing, she stated, “The state budget remains steadfast in its commitment to safeguarding the well-being of the people and fostering an economy that thrives in terms of quality, equity, and sustainability.”
