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Airlangga confident Indonesian economy will grow 7% in second quarter 2021




Jakarta, CNN Indonesia –

Coordinating Minister of the Economy Airlangga Hartarto is optimistic that the Indonesian economy will be able to grow by 7% in the second quarter of 2021, based on a number of indicators that show a positive trend.

In the first quarter of 2021, the Indonesian economy was still at minus 0.74%, so it had not come out of the brink of the economic recession that had occurred since the middle of last year.

“However, the trend is positive and to confirm the economy is growing V-curve. We hope that economic growth in the second quarter of 2021 will enter a positive path and it is estimated that it can reach 7%, “he said in the Talkshow Anticipating Community Mobility and Prevention of Spike in Covid-19 Cases Post -Eid Holidays, Saturday (15/5).

For the record, the Indonesian economy before the pandemic had never reached 7% during the time of President Joko Widodo. Since 2014, Indonesia’s economic growth has been around 5% every year.

A number of indicators that make Airlangga optimistic for the second quarter include the Purchasing Managers Index (PMI) reaching 54.6 in April 2021 and the Consumer Confidence Index (IKK) of 101.5.

In addition, the performance of exports and imports also improved in the first quarter of 2021. Exports from January to March 2021 were recorded to reach US $ 48.90 billion, up 17.11% from compared to 41.76 billion US dollars in January-March 2020. Meanwhile, imports for January to March 2021, they reached 43.38 billion US dollars, an increase of 10.76% compared to US $ 39.17 billion in January-March 2020.

In addition to improving economic indicators, this belief is also based on economic growth figures which fell sharply in the second quarter of 2020 due to the Covid-19 pandemic. In the second quarter of 2020, GDP based on constant prices stood at IDR 2.598 billion. Meanwhile, the figure for the first quarter of this year has approached the level of IDR 2.7 trillion.

“With such a low base, the increase is already over around 4.7 percent. Of course, to reach 7 percent you just need to push a little harder,” he said.

However, he admitted that the government was still wary of the impact of the second wave of Covid-19 in India and Singapore. Because these conditions prompted Singapore to decide to lock down the territory (confinement).

“Around us there is always the threat of Indian tensions. Therefore, we remain vigilant and how we can take advantage of the economy while remaining vigilant side effect of Covid-19 which is from India, ”he said.

(vws / vws)

[Gambas:Video CNN]

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