Minister optimistic of Indonesia clocking 4 percent growth by 2021-end
We projected to reach four percent by the end of the year, which is higher than IMF’s estimated figure of 3.2 percent and OECD’s 3.7 percent.
Jakarta (ANTARA) – Finance Minister Sri Mulyani Indrawati is optimistic that Indonesia’s economy could grow by four percent or higher than the Organisation for Economic Co-operation and Development’s (OECD’s) and International Monetary Fund’s (IMF’s) estimated figures by 2021-end.
“We projected to reach four percent by the end of the year, which is higher than IMF’s estimated figure of 3.2 percent and OECD’s 3.7 percent,” the minister noted at a press conference here on Wednesday.
According to Indrawati, the two institutions’ projections were too low since the economy could grow by 4.5 percent in the third quarter of 2021 in tandem with effective COVID-19 handling.
“This projection is based on whether a country could handle COVID-19, especially the delta variant, and we expect that we could preserve it until the end of the year and next year,” she emphasized.
Vaccination and implementation of health protocols could be instrumental in driving recovery of economic activities that have to be continued optimally, she stressed.
In addition, the implementation of state budget spending becomes another factor in the recovery of economic activities supported by the increase in commodity prices that could increase revenue, she highlighted.
“All of this will support economic recovery and the survival capability of the production sector that is becoming better in addition to preserving stability of the financial system,” Indrawati noted.
Earlier, the Finance System Stability Committee (KSSK) had ensured finance system stability in the third quarter of 2021 in normal conditions driven by an improvement in COVID-19 handling.
The economic recovery activities can be observed through various indicators recorded up to September 2021.
These indicators comprised manufacture’s Purchasing Managers Index (PMI) that is starting to enter the expansive zone along with the people’s mobility index, people’s shopping index, vehicle sales, cement sales, and growing electric consumption.
Currently, the cumulative economic growth up to the third quarter of 2021 was recorded to reach 3.1 percent, approaching the overall outlook for this year at 3.7-4.7 percent.