Solid domestic demand remains driver of economic growth

Solid domestic demand remains driver of economic growth

Economic Growth Target of Indonesia. (FOTO: Kiriman Toni Ervianto/Sumber Google/Dok)

Regionally, solid domestic demand is supported by increasing inter-regional trade, such as in Sumatra
Jakarta (ANTARA) - Solid domestic demand remains a key driver of economic growth, while exports languish on compressed global demand and sliding commodity prices. Regionally, solid domestic demand is supported by increasing inter-regional trade, such as in Sumatra, BI Communication Department Executive Director Onny Widjanarko said in a statement received in Jakarta, Friday.

Efforts are required to stimulate national economic growth and ensure economic resilience in the face of a potentially restrained global economic recovery.

In 2019, national economic growth was solid at 5.02 percent despite declining from 5.17 percent in 2018.

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Also, economic growth in Kalimantan and Bali-Nusa Tenggara has been maintained as exports of primary commodities have improved.

Moving forward, Bank Indonesia projects lower economic growth in 2020 between 5.0 and 5.4 0 percent, downgraded from 5.1 to 5.5 percent, before accelerating in 2021 from 5.2 to 5.6 percent.

Bank Indonesia has revised downwards its projection for 2020 due to the potentially muted global economic recovery in light of the recent Covid-19 outbreak, which will impact Indonesia's economy through the tourism, trade and investment channels.

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Nonetheless, Bank Indonesia will continue to strengthen coordination with the government and other relevant authorities to strengthen the sources, structure and speed of economic growth, while attracting investment through infrastructure projects and implementation of the Omnibus Bill on Job Creation and Taxation. 

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