Indonesian government expect the economic growth could rebound in 2021 between 4.5 to 5.5 percent of gross domestic products (GDP) after the pandemic, said finance minister - Photo by President Office

JAKARTA (TheInsiderStories) – Indonesian government expect the economic growth could rebound in 2021 between 4.5 to 5.5 percent of gross domestic products (GDP) after the pandemic, said finance minister. This year, the country has sliced more than half of the growth targets from 5.01 percent to 2.3 percent of the GDP.

“We estimate economic growth of between 4.5 and 5.5 percent with budget deficit around 3-4 percent of the GDP,” Sri Mulyani Indrawati told reporters via a videoconference after the limited meeting lead by President Joko Widodo on Tuesday (04/14).

On March 31, the head of state has widened the 2020 State Budget deficit from 2.5 percent to 5.07 of gross domestic products (GDP) to curb the country’ economy from the impact of COVID-19. To that, he has signed lieu of laws of the state budget and will immediately send to parliament.

“I just signed the regulation in lieu on it and will implement the relaxing for three years period until 2022. Immediately we will be submitted the revision of (2020 State Budget) to the parliament,” said Widodo.

He elaborated, to curb the economy from the spread of COVID-19, the government adds the spending worth of Rp405.1 trillion (US$25.80 billion). In details, Rp75 trillion will distributes for health spending, like purchase of personal protective equipment, test kits, referral hospitals, incentives for doctors, other medical workers, ventilators and death insurances.

Then Rp110 trillion for social protection like poverty alleviation program for 10 million beneficiaries, cards groceries 20 million families, pre-work cards for 2.6 million recipients, exemption from electricity costs for three months period, basic food and logistical support.

In addition, Rp70.1 trillion for tax and incentives. While, Rp150 trillion for fan economic recovery program, including credit restructuring, guarantees and financing of the business world for six months.

For the non-fiscal sector in ensuring the availability of goods, including industrial raw materials, the government applies a simplified export ban, simplification of a limited import ban, the acceleration of services in the import-export process through the national logistics ecosystem.

In total the government spending in 2020 will rises form intial plans Rp2,540.4 trillion to Rp2,945.5 trillion. While the revenues its expecting lowers then initial target Rp2,233.2 trillion.

Written by Staff Editor, Email: theinsiderstories@gmail.com