In 2020, the Indonesian economy was critically impacted by the COVID-19 pandemic. A year into the pandemic, will Indonesia’s businesses regain their momentum and optimism? How have local firms adapted to the shifting economic landscape? The ACI Webinar on “Drivers of Indonesia’s Economic Growth in 2021” convened a panel of distinguished speakers to discuss the country’s pathways to economic recovery and greater resilience in the year ahead. We welcomed over 230 participants from 15 countries and the webinar was timely considering Indonesia’s need to regain its economic vitality beyond the pandemic. Read the key takeaways from the webinar, and download the presentation slides below.
- Indonesia’s ability to implement an effective vaccination program is key to its recovery prospects. At present, the healthcare department is devising a way to distribute the vaccine across Indonesia’s vast archipelago.
- The government’s stimuli have kept the economy afloat during the pandemic by aiding affected firms and sustaining consumption levels. Mrs. Anne Sutanto, a representative from the private sector, pointed out that industries which align with high growth opportunities and multiplier effects have taken and should continue to take precedence in government schemes.
- Only a small number of firms received government assistance in the first half of 2020. It was found that the majority of firms were not aware of the available government assistance schemes. Thus, it is important for government agencies to redesign their policy distribution process in order to improve outreach to affected businesses.
- The Omnibus law, which was ratified on 5 October 2020, is expected to benefit firms that have grappled with the country’s restrictive labour regulations in the past.
- Digitalization has been identified as one of Indonesia’s key drivers of growth in 2021 as a corollary of increased digital consumption during COVID-19. All of our panelists agreed that the digitalization of goods and services is likely to continue post-pandemic.
- Trade relations between Singapore and Indonesia have remained strong during the pandemic. Ms Hastin Dumadi shared that the close engagements that the two countries have maintained in the past year is attested by Singapore’s US$9.8 billion investment realization in Indonesia in 2020, the highest in the last 6 years, and 34% higher than 2019.