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Indonesia: Economic growth to reach 4.6 percent in 2022: UI rector
The growth of 4.1 to 4.6 percent is still very achievable in 2022
Jakarta (ANTARA) – Rector of the University of Indonesia (UI) and economist Ari Kuncoro projects Indonesia’s economic growth to lie in the range of 4.1 to 4.6 percent year-on-year in 2022.
“The growth of 4.1 to 4.6 percent is still very achievable in 2022. The most important aspect is that we do not have to be too quick (to draw conclusions) because inflation is still looming over us, and inflation will reduce the people’s purchasing power,” Kuncoro noted during a public hearing meeting with the House of Representatives’ Budget Committee here on Thursday.
Transmission of COVID-19 caused by the Omicron variant increases the level of uncertainty. However, the spread of this variant has, so far, been more controlled than the Delta variant, so the situation is expected to have little impact on the economy.
“Efforts to control the COVID-19 pandemic remain significant, as controlling COVID-19 is currently proving to have a positive impact on the economy. Hence, it is no longer a trade-off,” Kuncoro remarked.
He also supports the government’s efforts to control COVID-19 while still allowing the opening of activities through the gradual implementation of community activity restrictions (PPKM).
With economic growth of 3.51 percent year-on-year in the third quarter of 2021, this growth is seen as starting to return to normal or to pre-pandemic levels.
Kuncoro affirmed that inflation concurrently should be controlled, so that it does not spike when budget management policies are restored, for instance, the state budget deficit is limited to no more than three percent of the gross domestic product (GDP).
“We can learn that controlling inflation is crucial. It is also related to controlling health. Hence, when the budget deficit returns to three percent of the GDP, the situation is actually still under control if we look at it with the current growth pattern,” Kuncoro added.
Source: https://en.antaranews.com/news/213177/economic-growth-to-reach-46-percent-in-2022-ui-rector