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

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…

The Indonesian Embassy in Cairo Receives Aid for Palestine

Senin, 19 Februari 2024 - 17:39 WIB

The Indonesian Embassy in Cairo Receives Aid for Palestine

The Indonesian Embassy in Cairo welcomes the Radjiman Wedyodiningrat Warship (RJW-992) which arrived at the Al Arish Port, North Sinai Province of Egypt at 8.00 A.M. Cairo local time (13/02).…