Bank Indonesia Predicts 5% Economic Growth in Q3



Laila Afifa

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  • TEMPO.CO, JakartaBank Indonesia (BI) governor Perry Warjiyo estimated Indonesia's economy to grow 5 percent in quarter three this year, and 4.5 percent in quarter four. Perry is confident the economy will grow, along with improvements in several indicators.

    "The improvement is reflected in the performance of various early indicators, such as retail sales, consumer expectations, PMI Manufacturing, as well as payment transactions through the Bank Indonesia National Clearing System (SKNBI) and Real Time Gross Settlement (RTGS) which have increased again," Perry said in an online press conference announcing the result of the central bank's board of governors meeting, September 21.

    Throughout August and until early September, the domestic economic activity gradually improved after experiencing a slowdown in July 2021.

    Perry said this is due to the return of people's mobility as the government eased restrictions following improving Covid-19 situations in Indonesia.

    Looking ahead, Perry predicts continued economic improvement in line with better vaccine rollouts, strong exports performance, the reopening of more priority sectors, and stimulus policies.

    Read: Bank Indonesia: PPKM, Vaccine Policies Must Be In Sync