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Indonesia's Economy to Grow 2.1 Percent in Q1 2021, Airlangga Predicts

5 February 2021 17:57 WIB

Coordinating Minister for Economic Affairs Airlangga Hartarto. ANTARA/Nova Wahyudi

TEMPO.CO, JakartaCoordinating Minister for Economic Affairs Airlangga Hartarto projected that Indonesia's economy would grow to 1.6 to 2.1 percent in the first quarter of 2021 after it experienced a recession throughout 2020.

“The government’s projection [on the economic growth] in 2021 is between 4.5-5.5 percent, and we sure hope there is positive growth in the first quarter at 1.6-2.1 percent,” said Airlangga in a virtual press conference on Friday, February 5.

The prediction was claimed to be similar to those of several international institutions. The World Bank, the Asian Development Bank (ADB), and the International Monetary Fund (IMF) projected the country’s economy would be around 4.4-5.3 percent this year.

Thus, the government is striving to boost various factors to improve the economy in the first stage of 2021. Airlangga said the government targeted to increase household consumption to 1.3-1.8 percent by providing social security programs to people's purchasing power.

Additionally, the government seeks to jack up investment to 4-5 percent after it plunged to 3-4 percent in 2020. “We will also increase exports and imports. In 2020, we saw a surge in exports, and the current problem is that there is a shortage of containers,” Airlangga Hartarto said.

Read: President Jokowi Optimistic Indonesia's Economy Will Recover Soon

FRANCISCA CHRISTY ROSANA



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