JAKARTA, KOMPAS.com – Indonesia's economy could grow five percent in 2021 but it would need an investment of 5,900 trillion rupiahs ($413.4 billion).
“In 2021, the Indonesian economy could grow 4.5 percent to 5.5 percent or at least five percent following a V-shaped recovery,” National Development Planning Agency’s (Bappenas) Deputy for Economic Affairs Amalia Adininggar Widyasanti said during a webinar on 2021 Development Outlook.
“Meanwhile, to achieve the economic growth of five percent, Indonesia needs an investment of 5,800 trillion rupiahs to 5,900 trillion rupiahs,” she added.
She went on to add that next year’s investment is expected to come from the private sector.
Bappenas predicted that next year, the investment will likely recover by 6.4 percent, providing a large contribution of 31. 5 percent to the country’s economy.
“We also hope that the domestic investment will continue to increase fueled by the investment of PMA [foreign direct investment] and PMDN [domestic investment] from the manufacturing sector at about 270 trillion rupiahs [$18.9 billion],” she said.
She also said that the newly-signed Law No. 11/2020 on Job Creation will pave the way for an improved national investment climate.
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