Sri Mulyani: Indonesia’s Economic Recovery on “Right Track”

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 5 Agustus 2021
Category: News
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Minister of Finance Sri Mulyani Indrawati

Indonesia’s economic growth in the second quarter of 2021 (7.07 percent) shows that economic recovery is on the right track, Minister of Finance Sri Mulyani Indrawati has stated.

“The second quarter shows that the economic recovery is on the right track and economic recovery strategies are correct,” the Minister said on Thursday (05/08).

She also said that the economic recovery was supported by all growth engines, which are now starting to recover, both in terms of expenditure and production.

On the expenditure side, she added, household consumption grew 5.93 percent, investment grew 7.54 percent, exports grew 31.78 percent and imports grew 31.22 percent.

The Minister added that in the business sector, trade grew 9.44 percent, construction grew 4.42 percent, transportation and warehousing grew 25.10 percent, and accommodation and food and beverage grew 21.58 percent, while manufacturing sector, which contributed nearly 20 percent of the national Gross Domestic Product (GDP), also generated a 6.58-percent growth.

“It shows that all sectors have started to grow, partly due to the policies of the Government on demand and supply sides,” Sri Mulyani said.

The former World Bank’s managing director also pointed out that the national economic recovery program in 2021 will continue to focus on supporting the demand side, as well as the production side, including increasing social assistance and implementing various policies that can help the business sector, including the MSMEs.

“We hope we can maintain the momentum of the economic recovery. Surely, we can maintain ii if all economic sectors and community members play their role,” Sri Mulyani said, adding that the State Budget as a countercyclical instrument will continue to be allocated to tackle COVID-19 pandemic and accelerating national economic recovery so that economic growth in the third quarter of 2021 can be around 4-5.7%.

“We must stay vigilant because we see that some sectors are disproportionately affected by COVID-19 and other sectors have higher resilience,” she remarked. (FID/UN) (RI/EP)

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