Minister: Indonesia's Economic Growth Higher than South Korea, Japan



Laila Afifa

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  • TEMPO.CO, JakartaCoordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia's economic growth in the second quarter of 2021 was better than a number of countries in Asia, such as Japan, South Korea, Vietnam, and India. Based on data from Statistics Indonesia (BPS), Indonesia's economy in Q2/2021 experienced positive growth of 7.07%.

    “This growth is the highest since the last subprime mortgage. This is also higher than that of several countries, such as India, South Korea, and Japan,” said Airlangga in a press conference, on Thursday, August 5.

    Japan's economy in the second quarter contracted to 1.6 percent. Meanwhile, India's economy grew 1.6 percent, South Korea 5.9 percent; and Vietnam 6.6 percent.

    Airlangga explained that in terms of aggregate demand, all business sectors have shown positive growth. The sectors that previously experienced contraction have also recovered.

    The minister said the main contributors to economic growth in the second quarter were household consumption and gross fixed capital formation or PMTB. Household consumption grew by 5.93 percent and PMTB by 7.54 percent. Both contributed 84.93 percent to the gross domestic product or GDP.

    Read: 7.07% Economic Growth; Finance Ministry Says Recovery Strategies Work