Indonesia Economic Growth may reach 7 Percent

Indonesia’s economy is believed to clock a nearly seven-percent growth in the second quarter of 2021. A minister stated this rise follows an upward trend in the realisation of foreign direct investments and consumer confidence index.

“Our economic growth rate indicates a positive trend. We expect it to reach seven percent,” Coordinating Minister for Economy Airlangga Hartarto noted in a press statement on Saturday.

As of March 2021, the realisation of foreign direct investments had reached 54.6 percent. The consumer confidence index was recorded at 90.1, stated the minister. Thus, consumer confidence is inching closer to the normal zone of 100.

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

There has been a surge in commodities, such as palm oil, rubber, nickel, copper, and coal. This surge has also bolstered the government’s endeavours to facilitate economic recovery. Hartato also stated that the rising prices of those commodities had helped improve the economy in several regions in the first quarter of 2021. Most notable is Tesla aiming to open a nickel plant in Indonesia.

Hartato stated that there is a significant rise in the economies of Sulawesi and Papua along with Sumatra and Java.

Covid affected economic growth last year

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 deaths.

The Covid-19 pandemic is undeniably a massive crisis in modern 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 to address the public health and economic crises.

In facing this reality, President Jokowi has appealed to the nation to have the 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.