Indonesia's economic growth in 2023 is projected to continue a positive trend. Bank Indonesia predicts that economic growth will remain strong this year, namely in the range of 4.5-5.3% and will continue to increase to 4.7-5.3% in 2024. Senior Advisor TaxPrime DR Machfud Sidik MSC is optimistic that the projected economic growth can This will materialize if the government consistently implements five strategies to strengthen the economy which lead to economic growth which will optimize tax revenues for the country's development. Machfud, who was also the Director General of Taxes for the 2000-2001 period, was of the view that a strategy to encourage a country's economic growth could be carried out through first, balancing economic growth with Indonesia's population growth. Currently Indonesia's population growth is estimated to reach 278 million people or around 1.2% of the total population of Indonesia. When compared to Organization for Economic Co-operation and Development (OECD) countries, Indonesia's population is in the range of less than 1%. The winner of the Master of Science in Public Policy and Management from Carnegie Mellon University, Pittsburgh, USA and Doctor (cum laude) in economics from Gadjah Mada University, Yogyakarta said that countries throughout the world, such as the People's Republic of China (PRC) and several countries The OECD is currently putting the brakes on population growth. The concrete step is to provide incentives to families like the Family Planning Program.

"Because when we talk about population, we finally talk about how the country absorbs population growth at the age of employment opportunities. Especially if we measure it by the unemployment rate. Compared to other OECD countries, our unemployment rate is still relatively high. Roughly in the 7 percent range. This means that economic growth and labor force growth must be balanced," explained Machfud. Second, encouraging exports with various fiscal incentives. Third, downstream. The value of Indonesia's exports as measured by GDP is in the range of 20-22 percent, while imports are around 19-20 percent. So that nett exports are in the range of 1-3 percent and imports 1-2.5% of GDP. Simultaneously, negotiations between Indonesia and trading partner countries are needed so that policies to increase value added, especially mining goods, run smoothly. Fourth, economic growth can reach the projection if the state is able to increase investment. Quoting data from the Ministry of Investment/BKPM, Indonesia has succeeded in exceeding the Rp 1,200 trillion investment target. Machfud considers this positive and needs to be appreciated because this performance is the fruit of President Joko Widodo's intensive and massive negotiations with various countries in terms of investment, including Saudi Arabia, the United Arab Emirates, China, Malaysia and others. So, to increase investment in the real sector, the government needs to provide fiscal incentives so that it can compete with other countries, such as Vietnam.

Source: https://www.pajak.com/pajak/lima-strategi-penguatan-ekonomi-indonesia-di-2023/