Business Association Predicts Indonesia's Economic Growth below Govt Assumption
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9 December 2021 21:19 WIB
TEMPO.CO, Jakarta - The Indonesian Employers' Association or Apindo predicts that the economy will grow between four and five percent next year. This prediction is lower than the government's assumption in the 2021 State Budget, which is 5.2 percent.
Despite the lower projection, Apindo chair Hariyadi Sukamdani said that a number of policy aspects have started to improve, including the national economic recovery indicator.
"Starting to improve gradually and quite consistently this year," he said at a press conference, Thursday, December 9.
Hariyadi mentioned other factors that may allow the economy to grow up to five percent, including a fairly good vaccine rollout and the issuance of the Job Creation law and its derivative rules.
Apindo predicts next year's inflation rate at around 3.0 percent—the same as the 2022 State Budget Assumption. The Association's outlook for the rupiah is also weaker than the government's assumption of Rp14,350 per US dollar. Apindo predicts the rupiah could trade up to Rp15,000 per dollar.
For this year, Apindo projects a growth of 3.0 to 3.75 percent, below Finance Minister Sri Mulyani's November forecast of 3.5 to 4.0 percent.
Read: BI Projects 5.5% Economic Growth by 2022
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