Fiscal stimulus policies for the automotive and property sectors are proven to have had a multiplier effect in terms of production and consumption
Jakarta (ANTARA) - The economic growth of 5.02 percent recorded in the fourth quarter of 2021 was driven by a recovery in the industrial and trade sectors, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said.



"The economic growth in the fourth quarter was 5.02 percent, driven by a recovery in the industrial and trade sectors, with growth above the national growth of 4.92 percent and 5.56 percent," he informed here on Monday.



The industrial sector made the largest contribution to the GDP (gross domestic product) of 18.8 percent and contributed 1.01 percent to economic growth, he said.



Meanwhile, the positive trade performance also had a positive impact on the national economy during the period, with exports growing 29.83 percent and imports swelling 29.6 percent, the minister added.



The gas and brake policies applied by the government during the COVID-19 pandemic were run in harmony with efforts to boost growth, he assured.



"Fiscal stimulus policies for the automotive and property sectors are proven to have had a multiplier effect in terms of production and consumption," he pointed out.



He also assured that the government will maintain the momentum of this positive performance so that economic growth in the first quarter of 2022 will be better and reach around 5 percent.



"The government will try to maintain the (growth) momentum in the first quarter of 2022, which last year grew negatively by 0.74 percent so that growth in the fourth quarter will be the same value," he informed.


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Earlier, the Central Statistics Agency (BPS) reported that cumulatively, the Indonesian economy in 2021 managed to grow positively to 3.69 percent, or better than 2020, when it contracted 2.07 percent.



Hartarto said that Indonesia's economic growth in 2021 was marked by turmoil as well as opportunities that were highly dependent on the development of the COVID-19 pandemic.



He cited the example of realization in the first quarter of 2021. Although it contracted 0.74 percent (yoy), the figure was much better than the realization in 2020, which was still very depressed by the massive spread of COVID-19, he informed.


Related news: Indonesia currently has low inflation rate amid COVID-19: BPS


In the meantime, the national economy got a boost in the second quarter of 2021 to grow 7.07 percent (yoy), given that the baseline from the same quarter in the previous year was very low at minus 5.32 percent (yoy), he explained.



Realization in the second quarter of 2021 was driven by the government's efforts to accelerate the vaccination program so as to increase public confidence in mobility, Hartarto said.



However, this achievement did not continue in the third quarter of 2021 as the realization was only 3.51 percent (yoy), in line with the emergency policy of the implementation of community activity restrictions (PPKM) to suppress the spread of the Delta variant, he added.


Related news: Finance Ministry projects 5.2% economic growth in 2022

Related news: Indonesia's first-quarter growth may reach 5%: economist

Translator: Katriana
Editor: Fardah Assegaf
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