Grand Opening of 6 Companies in Wiraraja Industrial Park Signals Indonesia's Economic Recovery

INTI- Batam, Indonesia - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, officially inaugurated the Grand Opening of 6 Companies at the Wiraraja Industrial Park in Kabil, Batam, Riau Islands on Monday (June 5). The event marked an important moment for Indonesia in its efforts to recover from the Covid-19 pandemic.

In his speech, Minister Airlangga stated that Indonesia has successfully become one of the most successful G20 member countries in economic recovery. The country's economic growth in the first quarter of this year reached 5.03% year-on-year (yoy). "This success is evidence that Indonesia has been able to overcome the impact of the pandemic effectively," said Minister Airlangga.

Additionally, Minister Airlangga expressed his hope for the Riau Islands to experience economic revival and achieve better growth, particularly in the tourism sector. The target is to increase tourist visits to the Riau Islands from 800,000 people last year to 2.9 million people this year.

In terms of combating inflation, Indonesia has successfully lowered the inflation rate from 4.33% (yoy) to 4% (yoy) in May. The inflation target for this year, according to the State Budget, is set at 3% with a tolerance of plus or minus 1 percent, which can be considered achieved.

"While other countries are still struggling with inflation, Indonesia has managed to control inflation effectively," said Minister Airlangga.

On the trade front, Indonesia has recorded a trade surplus for 36 consecutive months. In April, Indonesia's trade surplus reached USD 3.94 billion. However, the current Purchase Managers Index (PMI) has decreased to 50.3 due to global economic uncertainties.

Meanwhile, the Wiraraja Industrial Park has attracted investments worth USD 800 million or around IDR 12 trillion, creating job opportunities for approximately 13,000 people. "In addition, the industrial area is currently engaged in downstream activities for silica sand, which requires significant energy, good environmental protection, and a strong market," explained Minister Airlangga.

Minister Airlangga also mentioned the development of a Solar Power Plant (PLTS) in the area, which has been designated as a National Strategic Project (PSN).

"Furthermore, Indonesia is also in discussions with Singapore regarding the use and export of this energy to Singapore. This is expected to be a significant change in the energy sector in Batam, especially after having a Special Economic Zone in Nongsa," said Minister Airlangga.

Minister Airlangga expressed gratitude to all parties for Indonesia's resilience in maintaining strong economic growth. It was also mentioned that Indonesia's industrial exports have set a good example and instilled confidence that Indonesia's supply chain can be relied upon post-Covid-19 pandemic. "Many countries now see the potential of Indonesia as a reliable partner in the supply chain," emphasized Minister Airlangga.

In concluding his speech, Minister Airlangga highlighted that this is a golden opportunity for Indonesia to secure a significant role in the global supply chain. Indonesia has stood out in the G20 forum with competent and hardworking human resources. Additionally, Indonesia's energy sector is considered relatively low-cost and well-managed, particularly in the use of gas. Now, the expected role is for the regulators from the central government, provincial government, and local government to create a conducive environment for industries to operate effectively. ***.Hans