"The performance of economic growth is closely related to people's mobility. In the early days of the pandemic, economic growth experienced a deep contraction, but it continued to improve along with increased community activity," Yuwono said in Jakarta on Monday.
Meanwhile, Deputy Director of the Institute for Development of Economics and Finance (Indef) Eko Listiyanto said that in the first quarter of 2022, the economy has the potential to weaken again due to the spread of the Omicron variant.
If Omicron continues to spread and positive cases of COVID-19 increase, the government could potentially tighten the implementation of public activity restrictions (PPKM), which will have an impact on community activities and economic growth in the first quarter, he informed.
In fact, to achieve economic growth of 5.2 percent year on year in 2022, the economy needs to grow 5.0 percent each quarter, he pointed out.
Listiyanto forecast that the Indonesian economy would grow in the range of 4.3 percent in 2022 based on the Financial Services Authority’s (OJK) estimate of a growth in lending of 7.5 percent plus minus one percent, or Rp6,201.22 trillion.
In previous years, the Indonesian economy, which grew in the range of five percent, was always followed by credit growth of around 9.5 percent, he noted.
"This means that there is still a gap in credit needs of Rp589.2 trillion to support the economic growth target of 5.2 percent this year," he added.
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, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
"The economic growth in the fourth quarter was 5.02 percent, driven by a recovery in the industrial and trade sectors, with growth above national growth of 4.92 percent and 5.56 percent," he added.
Related news: Suspension bridges facilitate public mobility: PUPR Minister
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, 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 in harmony with efforts to boost growth, he assured.
"Fiscal stimulus policies for the automotive and property sectors have been 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.
Related news: Follow health protocols amid increase in public mobility: spokesperson
Translator: Sanya D, Azis Kurmala
Editor: Rahmad Nasution
Copyright © ANTARA 2022
