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Indonesia's economic growth rate believed to reach 7%, says minister

Tempo - May 16, 2021

Antara, Jakarta – Indonesia's economy is believed to clock a nearly seven-percent growth in the 2021 second quarter following an upward trend in the realization of foreign direct investments and consumer confidence index, a minister stated.

"Our economic growth rate indicates a positive trend. It is expected to reach seven percent," Coordinating Minister for Economy Airlangga Hartarto noted in a press statement that ANTARA quoted in Jakarta on Saturday.

As of March 2021, the realization of foreign direct investments had reached 54.6 percent, while the consumer confidence index of those, with expenses below Rp5 million, was recorded at 90.1, or had inched towards the normal zone of 100, the minister stated.

A positive trend was also apparent in the growth of Indonesia's exports and imports, gross fixed capital formation (GFCF), and the government spending, Hartarto pointed out.

A surge in the prices of commodities, such as palm oil, rubber, nickel, copper, and coal had also bolstered the government's endeavors to facilitate economic recovery.

Hartarto stated that the rising prices of those commodities had helped to improve the economic conditions of several regions during the first quarter of 2021.

A positive trend was observed in the economic conditions in the islands of Sumatra and Java, with growth rates of 0.86 percent and 0.83 percent respectively, the minister pointed out.

Similarly, certain parts of eastern Indonesia, such as Sulawesi and Papua, had clocked growth rates of 1.2 and 8.97 percent respectively, Hartarto remarked.

Coronavirus infections initially surfaced in the Chinese city of Wuhan at the end of 2019.

Since then, COVID-19 has spread to over 215 countries and territories, including 34 provinces of Indonesia, with a substantial rise in the number of deaths.

The Indonesian government officially confirmed the country's first cases on March 2 this year.

Since the early phases of this COVID-19 pandemic, which is undeniably recorded as a huge crisis in human history, the Indonesian government is sentient of its wide-ranging impacts on public health and the economy.

Hence, President Joko Widodo (Jokowi) has made repeated calls to maintain a balance in pushing the brake and accelerator pedals for ably addressing the public health and economic crises.

In facing this reality, President Jokowi has appealed to the nation to have mental fortitude, as all countries, including Indonesia, are reeling from the public health and economic crises owing to the impacts of the ongoing COVID-19 pandemic.

Source: https://en.tempo.co/read/1462867/indonesias-economic-growth-rate-believed-to-reach-7-says-ministe