Indonesia is committed to creating a business-friendly environment

2022-05-20 0 By

Airlangga Hartarto, Indonesia’s coordinating minister for the economy, told reporters on Wednesday that signs of optimism about economic recovery continue to strengthen, including the growing manufacturing sector.”The performance of the manufacturing sector, which continues to expand, needs to be appreciated.This positive performance continues to be improved by the government’s efforts to create a favourable business environment.Indonesia’s manufacturing output reached an expansion position of 53.7 in January 2022, up from 53.5 in December 2021, according to a purchasing managers’ index (PMI) report released by IHS Markit.As a result, the manufacturing sector maintained its expansion rate for the fifth consecutive month, still outperforming several ASEAN countries.The figure was 51.7 in Thailand, 50.0 in the Philippines and 48.5 in Myanmar.In order to maintain the trend of national economic recovery, the government will monitor all risks to achieving inflation by 2022, including imported inflation risks, Elranka said.He said high demand had pushed up the prices of basic goods and contributed to higher inflation around the world as economic activity picked up.In its World Economic Outlook report released in January, the International Monetary Fund (IMF) said rising inflation was one of the risk factors for economic recovery in 2022.Mr Elronka noted that persistently high energy prices and supply chain disruptions had pushed up inflation, particularly in the US and many emerging market and developing economies (EMDE).At the end of 2021, U.S. inflation topped 7 percent, the highest since June 1982.”The government will continue to coordinate with the central bank and regional governments through the Central and regional Inflation Control Teams to mitigate various challenges to achieving inflation by 2022, both globally and domestically.Strengthening work programmes and inflation control policy strategies at the regional level is strategic to support the achievement of controlled national inflation in the face of risks, “he said.In the real sector, the growth in global demand must also be an opportunity to be seized, Mr Elronka argues.With Indonesia’s manufacturing output expected to continue to grow in the future, the outlook for demand for export goods is expected to increase.To accelerate export performance and capitalize on existing momentum, the government will continue to encourage downstream projects in key commodities such as palm oil, nickel, bauxite, copper and tin, Elronka said.There will also be increased investment in Industry 4.0 so that Indonesian exports will be more competitive and have high added value in the future.