"In comparison with the second quarter of 2020, on a year-on-year basis, Indonesia's economy was recorded to have grown by 7.07 percent," BPS Head Margo Yuwono stated during a press conference in Jakarta, Thursday.
Yuwono highlighted that the growth was driven by the government's efforts to roll out vaccinations, which in turn boosted public confidence in conducting activities.
The growth was also influenced by global economic improvements, especially in several countries that are Indonesia’s trade partners, including China that clocked a growth of 7.9 percent; Singapore, at 14.3 percent; and South Korea, 5.9 percent; and Vietnam, 6.6 percent.
"Economic recovery in trade partner countries boosted the volume of demand for our products and resulted in our exports increasing," he remarked. The BPS earlier recorded Indonesia’s economy to have contracted by 0.74 percent yoy in the first quarter of 2021. Thus, on a quarterly basis, Indonesia’s economy grew 3.31 percent in the second quarter of 2021.
The expansion is the first positive figure since Indonesia’s economy contracted in the second quarter of 2020, reaching 5.32 percent.
Related news: Economic recovery hinges on progress in COVID-19 handling: Ministry
The economy began to contract as a result of various government policies implemented at the onset of the COVID-19 pandemic, one of which was the Large-Scale Social Restrictions (PSBB).
Although the growth stayed in the negative territory, a trend reversal was observed in various Indonesian economic indicators in the next quarter as economic performance continued to improve.
Indonesia’s economy witnessed a series of diminishing contractions from the third quarter of 2020 up to the first quarter of 2021, recorded respectively at 3.49 percent, 2.19 percent, and 0.74 percent.
Coordinating Minister for Economic Affairs Airlangga Hartarto projected positive economic growth in the second quarter of 2021 as compared to last year, reaching seven percent.
Related news: Economic growth of 7% in second quarter possible: OJK
Translator: Astrid FH, Aria Cindyara
Editor: Rahmad Nasution
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