Indonesia’s Economic Growth Estimated to Rise to 5.1 Percent Next Year: Coordinating Minister

Coordinating Minister for Economic Affairs Airlangga Hartarto in his press statement after attending plenary cabinet meeting, Tuesday (12/06), at the Presidential Office, Jakarta. (Photo by: PR/Agung)

Global financial institutions predicted that Indonesia’s economic growth next year will be satisfactory, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

“Be it the OECD, IMF, World Bank, or Asian Development Bank, our economic growth next year is projected to be between 4.7 to 5.1 percent,” Airlangga said in a press statement at the Presidential Office, Jakarta, Tuesday (12/06).

The projection, the Minister added, was based on the improvement in the COVID-19 handling vaccination acceleration, the state budged as a shock absorber amid the pandemic, high commodity prices, and the country’s success of the G20 Presidency.

“We must also pay attention to the geopolitical landscape, global inflation, scarring effect on inflation, extreme weather, and anything related to inflation,” he said.

Furthermore, Airlangga expressed optimism that inflation can be controlled at 5.34 to 5.5 percent by the end of the year. Previously, Indonesia’s inflation was recorded at 5.9 percent, 5.72 percent, and 5.34 percent.

“Various financial institutions predicted that the global economic outlook will grow at 2.2 to 2.7 percent, so Indonesia’s growth is nearly twice of the global based on political tension, inflation, and global interest rates,” he added.

On the occasion, Airlangga said that countries around the globe currently experiencing stagflation, with a total of 90 countries have increased interest rates with an average inflation of 12 percent.

“Nevertheless, several institutions have an optimistic projection for us in 2022. Likewise, they also projected the range between 4.7 to 5.25 percent in next year,” he remarked. (TGH/AIT/ST) (GWH/LW)