"We are optimistic that the economic growth target of 5.2 percent year on year would be achieved throughout 2022, provided that the COVID-19 situation is still under control; health system improvements continue; fiscal, monetary, and real responses are improved; and structural reforms continue to create jobs," Hartarto noted during a press conference here, Friday.
Hartarto is also optimistic that in the second and third quarters of 2022, economic growth would surpass five percent year on year.
Several challenges posed in the form of the COVID-19 pandemic, geopolitics, climate change, energy security, transmission of central bank reference rates from developed countries to Indonesia, and global inflation will also be anticipated so as not to reduce public consumption.
According to the minister, Indonesia can still make the most of the rising commodity prices to boost exports in the third quarter of 2022.
Meanwhile, in the second quarter of 2022, Statistics Indonesia (BPS) noted that exports grew 19.74 percent year on year, or contributed 24.68 percent to the economic growth.
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In addition, the government will accelerate government spending, which had contracted 5.24 percent year on year in the second quarter of 2022, so that it can grow higher in the third and fourth quarters of 2022.
“Indeed, we can see from the budget cycle that distribution of the government's budget in the first and second quarters is usually lower. This is different from 2021 during which our government spending will increase because our growth is also to maintain public consumption, which weakens during the COVID-19 pandemic," he stated.
The BPS noted that Indonesia's economic growth had reached 5.44 percent year on year in the second quarter of 2022, or higher than the first quarter of 2022 during which it was recorded at 5.01 percent year on year.
Household consumption was the highest source of Indonesia's economic growth, or gross domestic product (GDP), in the second quarter of 2022 according to expenditure, which was 2.92 percent, Statistics Indonesia (BPS) Head Margo Yuwono earlier stated.
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"As the main contributor to economic growth in the second quarter, which grew 5.44 percent as compared to the same period last year (year-on-year/yoy), household consumption grew very impressively at 5.51 percent (yoy)," Yuwono noted while highlighting the 2022 Quarter II Economic Growth report in Jakarta, Friday.
The growth in household consumption was also apparent as compared to the first quarter of 2022 during which it was recorded at 4.34 percent (yoy) on account of the purchasing power of the lower class of society supported by social assistance.
In addition, an increase was recorded in shopping activities of the upper middle class, especially during Ramadan and Eid al-Fitr, he pointed out.
After household consumption, Indonesia's highest source of economic growth according to expenditure was net exports or the value of exports minus the value of imports, at 2.14 percent.
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Goods and services exports became the component, with the highest growth in distribution and GDP growth according to expenditure since it managed to increase by 19.74 percent (yoy). Meanwhile, imports grew by 12.34 percent (yoy).
Furthermore, Yuwono remarked that the gross fixed capital formation (PMTB) was an investment indicator as the third-highest source of Indonesia's GDP growth in the second quarter of this year, at 0.94 percent.
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