Increase in APBN's Performance to Increase Growth

By : Herry Barus And Aldo Bella Putra | Saturday, September 09 2017 - 17:00 IWST

Menko Darmin Nasution (Setkab)
Menko Darmin Nasution (Setkab)

INDUSTRY.co.id - Jakarta - Coordinating Minister for the Economy Darmin Nasution requested an increase in government spending performance in the state budget to boost economic growth by 5.2 percent by the end of the year.

"What should be somewhat encouraged is from the state budget," said Darmin in Jakarta, Friday (08/09/2018)

Darmin said the growth in government consumption supported by the improved realization of this spending could support investment and export performance, which in the first half of 2017 contributed substantially to economic growth.

In addition, he expects investment growth or gross fixed capital formation that is more optimal in the second half of 2017, or better than the achievement of the first half of 2017.

"So if you want 5.2 percent growth, investment growth as long as the first semester is good," said Darmin.

Previously, the Central Bureau of Statistics (BPS) recorded economic growth in the first half of 2011 of 5.01 percent supported by improved investment and export performance.

However, in Q2 / 2017, government consumption contracted and grew 1.93 percent negatively due to lower realization of personnel expenditure and goods expenditure over the same period of 2016.

Positive note is the realization of social assistance expenditure for social protection and poverty alleviation which increased by 18.61 percent in this period.

On a separate occasion, Finance Minister Sri Mulyani Indrawati as reported by Antara, projected economic growth in 2017 amounted to 5.17 percent or slightly below the assumption in the APBNP set 5.2 percent.

She said the projection could be realized with an investment performance record, which in the first half of 2017 only grew 5.1 percent, grew by 5.4 percent in the second half of 2017.

However, efforts to improve the performance of these investments could face obstacles in the form of banking credit growth that is still experiencing sluggishness until mid-2017.

"The growth of bank credit still needs to be careful because banks consolidate a lot to the credit performance that is experiencing pressure due to declining commodity prices," said Sri Mulyani in a working meeting with Commission XI DPR.

News Comment

Today's Industry

Uli Silalahi, the President Director of Big Bad Wolf Indonesia, is in The International Book Bazaar 2023

Sabtu, 27 Mei 2023 - 03:53 WIB

BBW Jakarta 2023 Presents New Collection of Books, Experiences and Collaborations

The International Book Bazaar “Big Bad Wolf Books” (BBW) now presents all-new books and exciting experiences with the theme #BACAITUKEREN. BBW Jakarta 2023 meets reading lovers on May 26…

KIOXIA BG6 Series Client SSDs Bring PCIe® 4.0 Performance and Affordability to the Mainstream (Photo: Business Wire)

Jumat, 26 Mei 2023 - 17:00 WIB

Kioxia Introduces New BG6 Series Client SSDs, Brings PCIe® 4.0 Performance and Affordability to the Mainstream

Kioxia Corporation today announced the addition of the KIOXIA BG6 Series to its lineup of PCIe® 4.0 solid state drives (SSDs) – the first product to feature the company’s new 6th generation…

Pablo Malay, Director / Group Chief Corporate Officer and Group General Counsel (credit: Goto)

Jumat, 26 Mei 2023 - 15:50 WIB

Getting to know Pablo Malay, GoTo’s new director

GoTo’s Group Chief Corporate Officer was recently affirmed as a GoTo director during the company’s extraordinary general shareholder meeting on March 2.

President Jokowi received a visit from a US-ABC delegation at the Bogor Presidential Palace, West Java Province, Thursday (25/05/2023). (Photo: BPMI Setpres/Muchlis Jr)

Jumat, 26 Mei 2023 - 14:30 WIB

President Jokowi Receives Visit from US-ABC Delegation

Indonesian President Joko Widodo (Jokowi) received a visit from a delegation from the US-ASEAN Business Council (US-ABC) at the Bogor Presidential Palace, West Java Province, on Thursday (25/05/2023). 

Cabinet Secretariat Pramono Anung appointed Kardwiyana Ukar as Expert Staff for Communications, Cabinet Secretariat, Thursday (25/05/2023), in Jakarta. (Photo: Public Relations of Setkab/Oji)

Jumat, 26 Mei 2023 - 13:45 WIB

Cabinet Secretary Appoints Kardwiyana Ukar as Expert Staff for Communications

Cabinet Secretary (Seskab) Pramono Anung appointed Kardwiyana Ukar as Expert Staff for Communications, Cabinet Secretariat (Setkab), Thursday (25/05/2023) morning.