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 escapingthe middle class trap in the medium and long terms, Indonesia needs structuralreform that are key to the success of a sustainable economic transition, according to CoordinatingMinister for Economic Affairs Airlangga Hartarto.

High economic growth is necessary to increase employmentopportunities and social welfare for the community. To increase the amount ofinvestment, the Indonesian government has expanded the investment sector to createmore jobs.

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

According to the official, the fundamentals of the nationaleconomy have also been strengthened by improvements in the external relations andfinancial sectors. Indonesia's credit rating is maintained, despite thepressure of the pandemic over the past year.

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

VNA