COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/163/SET.M.EKON.3/3/2022

Government Continues to Promote Acceleration of the 2022 National Economic Recovery Program

Jakarta, March 27th, 2022

In 2021, the Indonesia’s economy managed to recover and grow 3.69% in the midst of the second wave due to the Delta variant. The acceleration of economic recovery in 2022 was mainly driven by a more controlled pandemic and a much higher vaccination coverage, thus boosting confidence and the recovery of economic activity.

Real sector indicators show good prospects in early 2022, with the Consumer Confidence Index at an optimistic level of 113.10 in February 2022. Meanwhile, growth in imports of raw materials was recorded at 29.98% (yoy) and capital goods at 20.98% (yoy) in February 2022, as well as the continuation Purchasing Managers' Index (PMI) at an expansive level of 51.2 as of February 2022.

In addition to vaccination and pandemic control disciplines, the acceleration of economic recovery in 2022 will also be determined by appropriate economic policy responses through fiscal and an accommodative, measurable and effective monetary policy, the effectiveness of the implementation of the structural reform agenda, both the implementation of the Job Creation Law and the Taxation Law, efforts to maintain price stability, especially food and energy, and significant job creation and readiness to digitally transform and innovate for the future.

The 2022 National Economic Recovery (PEN) Program which is currently allocated Rp455.62 trillion, is directed to encourage recovery in various sectors while still prioritizing the balance between health and the economy. In addition, the 2022 PEN is designed to be flexible and responsive to the dynamics that occur and is simplified into three clusters, namely the health cluster, social protection cluster, and the economic recovery strengthening cluster.

“In order to accelerate recovery since early 2022, the government has implemented a front loading through PEN Programs, including by extending the 3% People’s Business Credit interest subsidy, extending the incentive for Government -borne of Sales Tax on Luxury Goods  for certain types of automotive, extending the Government-borne of VAT incentives for Housing, expansion of Cash Assistance for Street Vendors, Stalls and Fishermen in 212 priority regencies/cities for alleviating extreme poverty, as well as accelerating the distribution of various social media, such as Family Hope Program, basic food cards and pre-employment cards," said Coordinating Minister for Economic Affairs Airlangga Hartarto virtually at the Economic and Business Innovation (CEBI) Conference with the theme “Post Pandemic Recovery from Various Perspectives organized by the Faculty of Economics and Business, University of Widyagama Malang, Saturday (26/3).

In 2022, Indonesia is also trusted to hold the G20 Presidency, an international economic cooperation forum consisting of 19 countries and the European Union. There are 3 things that are the main focus of Indonesia, namely inclusive health care, digital-based economic transformation, and the transition to sustainable energy.

There are 438 activities during the 2022 G20 Indonesia Presidency spread across 25 cities throughout Indonesia. The implementation of the various activities of the G20 Presidency is expected to increase domestic consumption by up to Rp1.7 trillion, increase national GDP to Rp7.4 trillion, as well as involve MSMEs and absorb around 33 thousand workers in various sectors.

With the spirit to “Recover Together”, the 2022 G20 Presidency of Indonesia is expected to contribute in supporting national and global economic recovery. This is necessary to take advantage of the momentum of the G20 Presidency and encourage the role of universities, especially academics and students, for sustainable, inclusive, and environmentally sound collaboration through working groups within the G20, namely Youth20 and Think20.

"Hopefully this Economic and Business Innovation Conference can become a forum to grow new ideas and concrete programs from the entire academic community at Widyagama University Malang in supporting the national economic recovery and realizing the ideals of a just and prosperous society," Coordinating Minister Airlangga concluded. (frh/dlt/map/fsr)

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Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs
Haryo Limanseto

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