Fuel Rise, Luhut Pandjaitan Believes Indonesia's Economy Can Grow Better

BBM Naik, Luhut Pandjaitan Yakin Ekonomi Indonesia Bisa Tumbuh Lebih Baik
BBM Naik, Luhut Pandjaitan Yakin Ekonomi Indonesia Bisa Tumbuh Lebih Baik

Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan optimistic that economy will continue to grow, even though the price of fuel oil ( BBM ) rises.

Luhut expressed his belief that economic in the third quarter of 2022 will grow even higher, despite fuel .

This optimism is based on the trend economic which has grown above five percent yoy since the fourth quarter of 2021 last year. 

"I think we all know that last quarter we still grew 5.44 percent. Actually, it is in line with our expectations. And we also predict, although later there may be an increase in the price adjustment of oil, fuel , we still seem to be able to do better next quarter of this 5.44 (percent)," said Luhut quoted by The Newbie from Antara on Tuesday, August 30, 2022.

Luhut also said that his optimism was based on the increased mobility of people out of the house since the mass vaccination. In addition, productivity increases accompanied by an increase in the frequency of public spending.

"Although we are currently in the midst of economic full of uncertainty, the Indonesian economy is still one of the best among others. This assessment also comes from many groups and observers abroad," said Luhut. 

Luhut also revealed that economic is also marked by high investor interest. Luhut said and appreciated the investment performance that was able to grow high, reaching 35.5 percent in the second quarter of 2022. In addition, the brilliant export performance also contributed to the trade balance surplus for 27 consecutive months.

"We need to know that our export performance is one of the highest in the world. We never actually expected this," he explained.

Luhut assessed that export performance, which grew to 32 percent yoy in July 2022, was supported by four factors. The four factors include high commodity prices, downstreaming which is starting to bear fruit, efficiency with digitalization and village funds. 

"Speaking of village funds, the money that circulates in 70 thousand villages, it makes economic in rural areas also run," said Luhut. Luhut concluded economic was the result of team work, including businessmen.

"If we look at Indonesia's performance, it is one of the best in the world. This is the fruit of teamwork, I think Apindo's role is also extraordinary here," he said. Previously, the government had given a strong signal through speeches and dialogues to raise fuel in the near future.

The government has also prepared a Rp 24.17 trillion allowance to the community as additional social assistance for the planned transfer of the subsidy fuel

Of the total social assistance amounting to Rp24.17 trillion, the community will be given three types of assistance in the form of direct cash assistance, wage subsidy assistance, and allocation of regional government general transfer funds to assist the transportation sector in their respective regions.

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