I think we all know that in the last quarter, we still grew 5.44 percent. It is beyond our expectations. We also predict that despite an increase in the price of oil, fuel, we can still see that the next quarter will be better than this 5.44 (percent
Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan was confident that the economy in the third quarter (Q3) of 2022 could grow even higher despite the surge in fuel prices.

This conjecture was based on the trend of Indonesia's economic growth, recorded at above five percent yoy since the fourth quarter of 2021.

"I think we all know that in the last quarter, we still grew 5.44 percent. It is beyond our expectations. We also predict that despite an increase in the price of oil, fuel, we can still see that the next quarter will be better than this 5.44 (percent)," Pandjaitan stated at the 32nd Indonesian Employer Association's (Apindo's) National Working Meeting and Consultation conducted online here on Tuesday.

The minister said the surmise was also based on the continued increase in public activities, as people ventured outdoors more often coupled with the increasing frequency of public spending.

The minister remarked that despite being in the midst of a global economic turmoil, the Indonesian economy was still one of the best. This view was also echoed by several groups overseas.

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In addition to sound economic growth, he commended the performance of investment that was able to grow high, reaching 35.5 percent in the Q2 of 2022.

Similarly, the high export performance contributed to a surplus in trade balance for 27 consecutive months.

"(Indonesia)'s export performance is one of the highest in the world. We actually never expected this," he added.

According to Pandjaitan, export performance, which grew to 32 percent yoy in July 2022, was supported by the high commodity prices, downstreaming that is starting to show results, efficiency with digitalization, and village funds.

"I think the village fund is because the money circulates around 70 thousand villages, and it makes economic activities in the countryside also run," he stated.

Minister Pandjaitan said Indonesia's sound economic performance was the result of team work that involved businessmen.


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"If we look at Indonesia's performance, it is one of the best in the world. This is teamwork, and I think the Indonesian Employer Association's role is also extraordinary here," he stated.

The government had constantly hinted at an increase in fuel prices in the near future.

The government had readied allowance worth Rp24.17 trillion for the community as additional social assistance for the planned transfer of fuel subsidies.

Of the total social assistance, amounting to Rp24.17 trillion, people would be given three types of assistance in the form of direct cash assistance, wage subsidy assistance, and allocation of the regional government general transfer funds to assist the transportation sector in their respective regions.



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Translator: Ade Irma J, Mecca Yumna
Editor: Fardah Assegaf
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