Economic Recovery, a Moment to Strengthen the Industrial Sector

Indonesia City

Chairman of the DPR RI Budget Agency (Banggar), MH Said Abdullah, asked the government to immediately transform economically by preparing a new mainstay sector apart from the commodity sector as a cushion for economic growth.

Moreover, the government is bound by the provisions of Law No.2 of 2020 concerning Perppu No.1 of 2020 which regulates the deadline for the APBN deficit amount of more than 3 percent of Gross Domestic Product (GDP) to only last in 2022. After that, the government must return to the APBN deficit mechanism. must not exceed 3 percent of GDP.

For this reason, the government must be able to encourage added value for commodity yields in the landscape of the national economy. The need to prepare a road map that is more actual and accurate for industrialization in Indonesia in the long term, especially for industrial industries that support Indonesian commodity output is the way to get maximum benefit from commodity output.

“The world has changed rapidly, technological innovation has been so fast as well. We don’t always rely on commodity yields to support economic growth like in the past,” Said said in Jakarta, Wednesday (3/3/2021).

Therefore, a reorientation of the pillars of economic growth in the years 2022-2024 must be carried out. This is done by preparing an exit strategy to explore new sectors that are intensive in capital, technology as well as labor to support economic growth.

The PDIP Senior Politician admitted that the national economic recovery should be a momentum for the government to strengthen domestic industries. In addition to maximizing downstream commodity products, the government needs to choose superior industries as future support. Because not everything can be done at once by the government.

“At least we are able to reduce the various imported commodities that have contributed greatly to the national road transaction deficit,” he said.

In the 2020-2024 RPJMN, the projected economic growth in 2022 is targeted at 5.4 percent (low), 5.7 percent (moderate), and 5.9 percent (high). Meanwhile, in 2023 the economic growth targets are 5.5 percent (low), 5.9 percent (moderate) and 6.2 percent (high). Meanwhile, the economic growth target in 2024 is 5.5 percent (low), 6.1 percent (moderate) and 6.5 percent (high).

“I think the assumptions for economic growth in the 2022-2024 range made before the Covid-19 pandemic are still relevant enough to be used as a reference, especially in the low range,” he explained.

The Chair of the DPP PDIP for the Economy explained, with the assumption of such growth, investment must grow 7.3-8 percent annually in the 2020-2024 range.

“The share of the processing industry is 20-21.2 percent greater in the 2020-2024 range, where the share of the non-oil and gas export processing industry is greater than that of oil and gas,” he explained.

Source: https://liputan6.com

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