Indonesia’s economic growth is expected to reach 8%
TEMPO.CO, Jakarta – Coordinating Minister of Economic Affairs Airlangga Hartarto said Indonesia’s economic growth could reach 8% in the second quarter of 2021. This figure is higher than President Joko “Jokowi” Widodo’s target of 7%.
“Growth is still projected between 6.7% and 7.5%. The government estimates that in this second quarter it can reach 7-8%, ”Airlangga said at today’s press conference, June 7.
He explained that the projection was based on several reasons, such as the purchasing managers index which reached the highest level of 55.3. In addition, sales of motor vehicles have also experienced a significant increase. “Car sales increased 228% year-on-year, while motorcycle sales climbed 227% year-on-year.”
In addition, retail sales also grew 9.8% year-on-year and the Consumer Confidence Index exceeded 100%. Airlangga said growth in state spending at the end of April 2021 also increased by 60.43%.
Previously, the Governor of the Bank of Indonesia (BI), Perry Warjiyo, predicted that the country’s economic development in the second quarter of 2021 could reach around 7% or even more.
“In the second quarter, Bank Indonesia estimates it will be around 7%, even based on the latest data it may be over 7%,” said Perry, announcing the results of the virtual board meeting of BI on Tuesday May. 25.
As for overall economic growth in 2021, the government shared the same projection with Bank Indonesia issued in April 2021, which was between 4.1% and 5.1%.
Read: Sri Mulyani predicts economic growth of up to 8.3% in Q2 2021
CÉSAR AKBAR | MUHAMMAD HENDARTYO