JAKARTA, Nov 22 (Bernama) -- The Indonesian government has set an economic growth target of 5.6 per cent in 2020, up from the 5.3 per cent targeted this year, VNA quoted Coordinating Minister for the Economy Airlangga Hartarto as saying.

The figure is mainly supported by investment and exports, which are expected to increase by 7.0-7.4 per cent and 5.5-7.0 per cent, respectively.

On the supply side, economic growth is expected to be supported by the industrial sector which will increase between 5.0-5.5 per cent. The unemployment rate is expected to fall to 4.8-5.0 per cent, accompanied by a reduction in the poverty rate of between 8.5 and 9.0 per cent.

In a speech at the 2019 US-Indonesia Investment Summit in Jakarta on Nov 21, Hartarto said the government has mapped out strategies and priorities to be made to face economic challenges in 2020, both internally and externally, to achieve the target.

The Indonesian government will increase economic growth through structural transformation to strengthen domestic demand and international trade performance.

It will maintain macroeconomic stability by positioning domestic prices and the exchange rate at a stable and competitive level. It will also increase an inclusive and sustainable economy.

He affirmed that increasing competitiveness will also be a focus, adding that sustainable economic growth is needed to rise above the poverty line and encourage human development.

The minister revealed that economic stability has a positive impact on investment attraction. Based on data from the Bank Indonesia, the capital and financial account recorded a surplus of US$7.6 billion in the third quarter of 2019. The country’s balance of payments recorded a controlled deficit of US$46 million in the period, well below the deficit of US$2 billion in Q2.

The balance of payments is also supported by the current account deficit which is managed at 2.7 per cent of gross domestic product.