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THE World Bank’s Chief Economist for the East Asia and Pacific Region Aaditya Mattoo is optimistic that the Indonesian (RI) economy will be able to grow close to 5% in 2022 after experiencing pressures in 2020 and 2021 due to the COVID-19 pandemic.
“We are very optimistic that Indonesia’s economic growth rate next year can approach 5 percent and this is an improvement in itself,” he said at the World Bank East Asia and Pacific Economic Update Briefing in Jakarta, Tuesday (9/28).
Mattoo stated that the factors driving Indonesia’s economy to be able to grow close to 5% were the government’s various efforts in overcoming the COVID-19 pandemic. Indonesia has opted for a hybrid approach, i.e. implementing a tightening of mobility to address health but at the same time trying to support the economy.
“Moreover, the government’s steps to advance earlier to hold a vaccination program are also a factor in boosting the economy because recovery is very dependent on the immunity of the community,” he said.
In addition, he continued, the vaccination program that continues to be accelerated and accelerated as well as massive tracing, testing and treatment efforts as well as social distancing campaigns are also aspects of restoring the economy. If all this is done, we are optimistic that Indonesia will be able to overcome this disease. This disease will not go away but this step will revive the economy.
However, Mattoo reminded that there are still several challenges for Indonesia, including regarding vaccination, namely equitable distribution and budget, considering that this country has a large and widespread population.
“It’s a very decentralized country so they need to be able to do a lot more about distribution and dealing with vaccination budgets,” Mattoo said.
He explained that the Government of Indonesia also needs to carry out several reforms, including regarding social security, considering that there are still many people who do not need assistance and actually receive assistance. I suggest that Indonesia continue to develop digital infrastructure so that the government is able to reach underprivileged people in all corners of the country.
“Digital infrastructure will help the government to better target people in need so that the effectiveness of the national guarantee program can be sustainable. I believe in the next few months it will be very important to provide support to those in need,” Mattoo concluded. [antaranews]
