Kadin projects that the retail industry sector will grow by 4.4-4.8% and the tourism sector by 4.2% in 2023.
Heaptalk, Jakarta — President Joko Widodo officially lifted restrictions on public activities to control the spread of covid-19 (12/30). In response to that, the chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid saw the lifting of the restrictions as a force for economic growth, including MSMEs and the tourism sector.
“The lifting of restrictions on public activities can be momentum for Indonesia to strengthen its economy. Opportunities for the business world are wide open to start operating normally,” said Arsjad in his statement.
Arsjad is optimistic that with the lifting of the restriction, people’s mobility will increase, resulting in the potential to encourage public consumption and also boost economic growth. The recovery in the performance of MSMEs is one of the main driving forces for current economic growth, given their large contribution to GDP and employment.
“Seeing from GDP, the accommodation sector has normal growth throughout 2022. Retail is the same, showing a recovery. Investment is also on target,” said Arsjah. From March 2020 to March 2022, more than 1,500 retail outlets went out of business. The retail industry is slowly growing in 2022. The Information and Policy Analysis Department at Kadin projects that this sector will grow by 4.4-4.8% in 2023.
In addition, the tourism sector also showed positive growth in 2022. Allowing both foreign and domestic tourists to travel in Indonesia has encouraged an increase in the accommodation, food, and beverage sector. Kadin projects this sector to grow by up to 4.2% in 2023.
Arsjad said the covid-19 pandemic had given a warning to countries in the world, including Indonesia, about the importance of strengthening resilience in the health sector. The healthcare sector still has the potential to grow with greater emphasis on preventative measures, spanning vaccines, telemedicine, and the use of technology for the early detection of disease.
The pharmaceutical and medical device industries are also predicted to continue to grow in 2023. Even though the restrictions on gathering and movements are removed, according to Arsjad, currently the public become more aware of health rather than before the pandemic. They are also more independent in detecting covid-19 symptoms using PCR or antigen and seeking treatment.
In his conclusion, Arsjad said the lifting of restrictions on public activities could spur business actors in Indonesia, particularly MSMEs, to always innovate to increase domestic consumption.
