Govt Spending is the Key in Driving the Economic Growth

The government needs to increase its expenditure to drive economic growth this year as consumer spending has yet to recover.

KOMPAS/AGUS SUSANTO

Activities at a shopping center in the Sentul City area, Bogor, West Java, Sunday (25/4/2021). The ban on mudik (going home) on May 6-17, 2021 is expected to increase public visits to malls and shopping centers in big cities. Economic activity increases gradually as more and more people get vaccinated.

JAKARTA, KOMPAS - Indonesia needs to seek a breakthrough in supporting economic recovery this year. The slow pace of global economic recovery as the result of the resurgence in Covid-19 cases must be coped with a number of strategies, such as increasing exports and government expenditures.

Indonesia\'s Center of Reform on Economics (Core) estimates that Indonesia\'s economy will grow between 3 percent and 4 percent this year, lower than the government’s economic growth target of 5 percent.