Sri Mulyani Forecasts Economic Growth Up to 8.3% in Q2 2021

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said the ministry forecasted the country's economy would grow around 7.1 to 8.3 percent in the second quarter of 2021.

“The momentum of economic recovery along with the good handling of the pandemic is necessary and will accelerate the economy in the second quarter of 2021 starting this April. We predict that this recovery trend will rise in May as long as the COVID-19 cases don’t surge following the fasting month and the Eid season,” said Sri in a working meeting with the House of Representatives (DPR)'s Commission XI on Monday, May 24, 2021.

She believed that consumer confidence had begun to recover, community activities had increased, the retail sales index had improved, and the retail car sales had even grown 227 percent year-on-year.

“Our state spending also contributes to this acceleration. Electricity consumption, cement production, and the manufacturing industry's Purchasing Managers Index (PMI) even show a recovery trend,” said Sri, adding that demands and supplies have increased.

The Finance Ministry estimated that household consumption would grow 6-6.8 percent in the second quarter given the trend in April. The state consumption will also remain at 8.1-9.7 percent, and that investments will grow.

“We hope to achieve double-digit growth, between 9.4-11.1 percent. The exports in April grew above 50 percent, and we hope its growth in the whole quarter would reach around 14.9-19.7 percent, while imports would grow 13-19.7 percent,” she reiterated.

Sri Mulyani went on to say that Indonesia's economy, meanwhile, would see modest growth this year given the correction in the first quarter. “We hope [the economic growth] in the third and fourth quarters will accelerate,” she said.

Read: Govt Determined to Realize Structural Reforms in Educational Sector: Sri Mulyani

MUHAMMAD HENDARTYO