Indonesia strengthens structural reform serving economic transition: minister

Thousands of vehicles drive between multi-storey buildings in the Pancoran area, Jakarta, on March 20, 2021 (Photo: ANTARA)

Jakarta (VNA) – Along with the goal of escaping the middle class trap in the medium and long terms, Indonesia needs structural reform that are key to the success of a sustainable economic transition, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

High economic growth is necessary to increase employment opportunities and social welfare for the community. To increase the amount of investment, the Indonesian government has expanded the investment sector to create more jobs.

Currently, there are 246 priority enterprises that will open for investment with the facilitation of fiscal and non-fiscal incentives. High-tech and export-oriented industries are prioritised for development to become the driving force behind national economic growth in the future.

According to the official, the fundamentals of the national economy have also been strengthened by improvements in the external relations and financial sectors. Indonesia's credit rating is maintained, despite the pressure of the pandemic over the past year.

In addition, macroeconomic policy coordination will continue to be strengthened to bring about positive sentiment in 2022 toward the forecasted yearly growth of 5.2 percent. The Indonesian government will also implement a carbon tax to change the behavior of economic sectors to carry out low-carbon activities./.

VNA