BI governor sanguine about positive national economy growth in Q4

BI governor sanguine about positive national economy growth in Q4

Bank Indonesia Govbernor Perry Warjiyo. ANTARA/Tweeter screenshot @bankindonesia/pri.

Why am I optimistic? Why did our economy improve in the third quarter and the fourth quarter? Insya Allah (God willing), it will grow positively in the fourth quarter. It will grow five percent next year and six percent in the next five years.
Jakarta (ANTARA) - Bank Indonesia (BI) Governor Pery Warjiyo is buoyant about the national economy growing positively in the 2020 fourth quarter (Q4) after managing to recover in the third quarter from deep contraction in the second quarter.

"Why am I optimistic? Why did our economy improve in the third quarter and the fourth quarter? Insya Allah (God willing), it will grow positively in the fourth quarter. It will grow five percent next year and six percent in the next five years," Warjiyo stated during the opening of the Indonesia Fintech Summit 2020 here on Wednesday.

Warjiyo noted that the central bank will coordinate with the government and the Financial Service Authority (OJK) in guarding the momentum of recovery and the potential of positive economic growth in the fourth quarter.

"Monetary, fiscal, and financial system stability and structural reform will support our economic growth. Overall, the economy will improve," he remarked.

Warjiyo stated that the BI will direct all its policies at supporting stability and encouraging economic growth.

To this end, BI has taken several steps, including lowering its benchmark rate, stabilizing the rupiah's exchange rate, undertaking quantitative easing measures, and coordinating with the Finance Ministry in the field of fiscal financing.

"BI is committed to directing all its policies towards supporting stability and boosting the economy," he stated.

The Central Statistics Agency (BPS) had announced early this month that the Indonesian economy had contracted 3.49 percent (yoy) in the third quarter of 2020.

Thus, Indonesia officially fell into recession akin to that experienced by various countries battered by the COVID-19 pandemic since it had recorded negative growth for two consecutive quarters, BPS Head Suhariyanto stated at a press conference on Oct 5.

The Indonesian economy contracted 5.32 percent yoy in the second quarter of 2020 owing to the COVID-19 pandemic having limited economic activities.

Despite experiencing negative growth, on a quarterly basis (qtq), Indonesia’s economy advanced 5.05 percent qoq in Q3 of 2020, which shows signs of significant recovery. Related news: BI survey indicates September retail sales continued to improve
Related news: Chatib Basri projects Indonesia's economic recovery to start in 2022


 

Comments