February 26, 2021 | Invest Indonesia

World Bodies Project Indonesia’s Economic Growth at 4.5%: President

Source from: Antara News

Original News HERE

Several world bodies, including the International Monetary Fund (IMF), World Bank, and Organization for Economic Cooperation and Development (OECD), have forecast Indonesia’s economy to grow 4.5 percent this year, according to President Joko Widodo (Jokowi).

While addressing the CNBC Indonesia Economy Outlook forum held online on Thursday, Jokowi emphasized that Indonesia should be in a position to realize the forecast.

To this end, all elements of the nation must unify and channel their attention to tackling the health crisis to ensure that the country can record quality growth, the president reiterated.

“We must prove that Indonesia will be able to be better than what they have expected. The key is simple that the national energy must be united, must focus on handling the health crisis, and push for quality growth,” he stated.

“Our economic growth is currently in the process of recovery, and during the time of rising, we must greet it with optimism, enthusiasm, hard work, and bravery,” he affirmed.

The key to the nation’s economic recovery lies in the capability of all sides to handle the pandemic, the president noted.

“The 3M (washing hands, wearing mask and maintaining social distancing), 3T (tracing, testing and treatment, and PPKM (micro-scale social restrictions) should continue to be implemented while at the same time we should conduct the large-scale vaccination program,” he stated.

Indonesia recorded a slower economic contraction of 2.07 percent year-on-year in 2020 in contrast with the government’s estimate of 2.2-1.7 percent, the Central Statistics Agency (BPS) stated.

“Cumulatively, the Indonesian economy contracted 2.07 percent in 2020 as compared to that in 2019,” BPS Chief Suhariyanto remarked during a press conference here recently.

The economy shrank 2.19 percent yoy in the fourth quarter of 2020 despite the government having made some improvements, he pointed out.

The Indonesian economy has shown signs of contraction owing to the COVID-19 pandemic since the first quarter of 2020 when it only clocked a growth of 2.97 percent.

Under normal circumstances, the Indonesian economy registers an average growth of five percent yoy in the first quarter.

The pandemic, which hindered economic activities and human mobility, has driven Indonesia into recession after its economic growth contracted 5.32 percent in the second quarter and 3.49 percent in the third quarter of last year.

Indonesia’s economy that contracted 2.07 percent yoy in 2020 was above the global average, Kunta Wibawa Dasa Nugraha, expert staff in charge of state expenditure affairs of the Ministry of Finance, stated.

“Although it is a minus, but the global level was minus 3.5 percent, which means we are much better than the world average. Some countries have recorded a minus of far above 3.5 percent,” Suhariyanto noted during the Webinar on the Acceleration of Social Economy here on Sunday.

The Indonesian economy was driven to a severe contraction of 5.32 percent in the second quarter of 2020 since the government’s stimulus had yet to be optimally accelerated, he stated.

Reporter: Hanni Sofia/Suharto
Editor: Fardah Assegaf, Ine