National Economic Foundation Strengthens, Coordinating Minister Airlangga Leads Evaluation and Work Plan in Palembang

Jakarta, INTI - The foundation of the national economy continues to strengthen with various efforts made by the Government. As of Q1-2024, economic growth was recorded at 5.11% (yoy) and is predicted to grow above 5% (yoy) by the end of 2024. The inflation rate remains within the target range at 2.51% (yoy) as of June 2024.

Nevertheless, various global economic challenges still need to be mitigated, one of which is by strengthening performance in various sectors. To maintain the best performance for the national economy, Coordinating Minister for Economic Affairs Airlangga Hartarto led the Leader’s Offsite Meeting (LOM) of the Coordinating Ministry for Economic Affairs in Palembang City on Saturday (20/07). The event, attended by all echelon I and II officials of the Coordinating Ministry for Economic Affairs, aimed to evaluate the performance achievements of the first half of 2024 and sharpen the work programs for 2025.

"Certainly, we need to continue pushing the achievements of flagship programs, one of which is digital infrastructure development," said Coordinating Minister Airlangga.

Specific Directives from Coordinating Minister Airlangga

Several specific directives were conveyed by Coordinating Minister Airlangga, including the completion of several priority and flagship programs towards the end of the Government's term, efforts to maintain price and food stock stability, the continuity of the Pre-Employment Card Program with integrated job availability & demand pipeline, the development of the semiconductor industry, and the completion of National Strategic Projects (PSN) that still need to be driven.

Additionally, discussions also included international trade cooperation such as The Regional Comprehensive Economic Partnership (RCEP), Indo-Pacific Economic Framework (IPEF), and The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to increase export contributions, as well as the International Technology Security and Innovation (ITSI) Fund for infrastructure and international trade security.

With various programs and strategies implemented by the Coordinating Ministry for Economic Affairs, Coordinating Minister Airlangga expressed optimism about the current economic targets, while also being able to form a strong economic foundation for future sustainable development.

Performance Evaluation and Economic Conditions of South Sumatra

In addition to leading the LOM of the Coordinating Ministry for Economic Affairs, Coordinating Minister Airlangga also provided directives related to the current national and global economic conditions to all officials within the South Sumatra Provincial Government. As the third-largest economic contributor in Sumatra, the economic growth performance of South Sumatra in Q1-2024 showed solid growth at around 5.6% (yoy) with controlled inflation at 2.48% (yoy) as of June 2024.

Furthermore, several social indicators of South Sumatra Province also showed improvement, such as the inequality rate per March 2024 at 0.33% and the open unemployment rate per February 2024 at 3.97%. However, the South Sumatra Provincial Government needs to address the poverty rate, which is still above the national average.

Development of Mining, Industry, and Trade Sectors

Supported by the mining, industry, and trade sectors, the economy of South Sumatra Province is expected to strengthen further with the optimization of these potentials. One of the efforts that can be pursued is through the downstreaming of mining and agricultural commodities to encourage sustainable added value.

Despite numerous solid achievements, Coordinating Minister Airlangga mentioned that South Sumatra Province will still face challenges such as drought and commodity price fluctuations. To address these challenges, Coordinating Minister Airlangga provided several directives, including strengthening food production through the optimization of irrigation infrastructure, utilization of the People's Business Credit Program, completion of National Strategic Projects to support connectivity, and productive use of investments.

"I hope that various fiscal needs can also be met in more innovative ways, including collaboration with banks, financial institutions, and Government financing institutions such as PT SMI," concluded Coordinating Minister Airlangga.

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