Jakarta (ANTARA) - The contribution of household consumption to Indonesia's economy is expected to rise up to 54 percent in 2022, reflecting a normal level of growth of 5 to 5.3 percent, according to the second financial note of the 2022 State Budget draft bill.

In comparison, 2.2-2.8 percent growth in household consumption has been projected for the second half of 2021.

"The growth of household consumption in 2022 will be attributed to better public activity and mobility patterns after recovering from COVID-19 pandemic escalation be it in 2020 or 2021," according to the draft bill accessed from Jakarta on Tuesday.

Successful controlling of the pandemic will boost public confidence in performing activities as they normally did prior to the pandemic, it stated.

In addition, government policy support for strengthening social protection programs for the poor will also be an important factor in encouraging or pushing public consumption.

Reinforcement of social protection programs will be carried out by integrating data, improving distribution mechanisms, and synergizing relevant programs, including subsidy programs for the public.

Stable inflation in the range of 3 ± 1 percent on a continuous basis will also help to maintain people's ability to buy things.

Related news: Indonesian govt channels attention on bolstering domestic consumption

The momentum of strong and just economic recovery in the first half of 2021 needs to be maintained, although anticipation must be practiced due to high uncertainty from the spike in COVID-19 cases, according to the note.

Since mid-June 2021, there has been a spike in COVID-19 cases in Indonesia due to the emergence of the Delta variant, which spreads very quickly.

The government has responded quickly to the surge by enforcing Level 4 community activity restrictions (PPKM) in various regions, prioritizing COVID-19 handling to ensure that citizens stay safe and healthy.

In addition to that policy, the government has also continued to conduct mass vaccination programs, which aim to reach more people by the end of the year.

Earlier, President Joko Widodo had said that he hoped to see 70 percent of Indonesians vaccinated by December 2021.

The effectiveness of the pandemic control policy will be the key to the sustainability of the economic recovery in the second half of 2021, he added.

Related news: Strong domestic consumption to back Indonesia's economic growth: ADB





Translator: Royke Sinaga, Mecca Yumna
Editor: Rahmad Nasution
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