Minister forecasts economy to rebound to 4.5-5.5 percent in 2021

Minister forecasts economy to rebound to 4.5-5.5 percent in 2021

Coordinating Minister for Economic Affairs Airlangga Hartarto. ANTARA/HO-Coordinating Ministry for Economic Affairs/pri/sh

The projection is in line with outlook from some international institutions, such as the World Bank, OECD, ADB, and IMF.
Jakarta (ANTARA) - Indonesia's economy is projected to rebound to a range of 4.5 - 5.5 percent in 2021, propped up by increased household consumption, investment, state expenditure, and exports, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.

"The projection is in line with the outlook from some international institutions, such as the World Bank, OECD, ADB, and IMF," Hartarto noted in a statement here on Wednesday.

Some measures adopted to mitigate the impact of the COVID-19 pandemic comprise the disbursement of Rp695.2 trillion of funding for the National Economic Recovery Program (PEN) in 2020.

Of the total allocation, budget realization has reached Rp579.8 trillion, or 83.4 percent.

The budget was disbursed for the health sector, social protection, support for micro-, small- and medium-scale enterprises, business incentive, transfer to regional administrations, ministries/institutions, and corporate funding.

The moves have helped the country's economic recovery, with growth having contracted 2.07 percent.

Despite the economic contraction, Indonesia's economy has shown significant recovery, from minus 5.32 percent in the second quarter to minus 3.49 percent in the third quarter and minus 2.19 percent in the fourth quarter of 2020.

For 2021, the government has disbursed Rp688.33 trillion of funding for the PEN program, raised from its initial budget plan at Rp627.9 trillion.

Implementation of the micro-scale Public Activity Restrictions (PPKM) to curb coronavirus transmission has also supported the economic growth projection.

"We laud the TNI (the Indonesian Military) that dispatched 30,219 personnel to support the implementation of micro PPKM in seven priority regions on February 9-22, 2021," he stated.

The TNI has also prepared 117 military hospitals across the country to handle the COVID-19 pandemic and help people in need of medical treatments.
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