TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati on Tuesday said the country’s economy showed signs of improvement in January 2021 as Indonesia commenced its nationwide vaccination program, which sparked optimism. However, there were a number of economic indicators with varying conditions.
“The improvement is visible in January; Indonesia’s manufacturing PMI (purchasing management index) continues the expansion trend to the level of 52.2 compared to December 2020’s 51.3,” said Sri Mulyani in the press conference on State Budget on February 23.
The growth is said to be boosted by the solid expansion and demands that have recovered, which aligns with the manufacturing PMI while the Indonesian trade balance in January 2021 recorded a US$1.96 billion surplus. It was backed by a stronger export growth, mainly in exports of palm cooking oil and cocoa beans.
The finance minister predicts that household consumption will continue to strengthen along with the government’s social protection programs for the low-income demography. She said electricity consumption in January 2021 grew positive to 22.4 percent (yoy) especially in the household sector.
Sri Mulyani said Indonesia’s 2020 state budget (APBN) worked extremely hard to sustain the effects of the Covid-19 pandemic which could continue in 2021. This year, the state budget will continue as a booster for the national economic recovery.