July 6, 2021, 04.03 PM

JAKARTA, KOMPAS.com - Indonesia's growth projection in the third quarter of 2021 was revised downwards to a range of 3.7-4.5 percent from 4.5-5.3 percent following the emergency measures taken by the government to contain a spike in Covid-19 cases.    

"The economic growth is expected to reach about 3.7 to 4.5 percent. It depends on the conditions in handling the spread of Delta strain of Covid-19," said Coordinating Minister for Economic Affairs Airlangga Hartanto in a virtual press conference, Monday, July 5.

Airlangga explained that the prediction came after the 18-day emergency restrictions on community activities or locally known as emergency PPKM for Covid-19 in Java and Bali was imposed to contain the spread of the virus.

Measures to tighten the movement of people would certainly have an impact on the national economy, considering that the economic contribution of Java and Bali reaches 60 percent of the nation’s gross domestic product (GDP), he said. 

Also readIndonesia to Start Enforcing Emergency PPKM in Java and Bali

He said that stable exports will contribute to the growth from July to September this year. Besides, commodity prices in the global market for export goods namely palm oil, coal, nickel, rubber, and aluminum will also increase. 

"Exports [performance] is expected to be well-maintained continuously because global demand is also increasing," he added.

In addition to exports, the economy would also be supported by government expenditure, which is expected to be consistently maintained.

However, regarding the economic growth in the second quarter of 2021, Airlangga said that it would grow to seven percent, although it was slightly below the initial projection of 7.1 to 8.3 percent.

Also readJakarta Tightens PPKM, Extends the Policy in the Capital

Page:


Recommendation
Comment wisely and responsibly. Comments are entirely the responsibility of the commentator as regulated in the ITE Law
Report
Thank You! We have received your report. We will remove comments that conflict with the Community Guidelines and the ITE Law.

More Headlines

News
August 16, 2022, 01.24 PM

UN Envoy Makes First Visit to Myanmar

News
August 15, 2022, 09.06 PM

Myanmar Court Sentences Suu Kyi to 6 Years

News
August 12, 2022, 04.41 PM

Researchers Warn of Melting Antarctic Ice Sheet

News
August 8, 2022, 09.07 AM

ASEAN Wraps Up Foreign Ministers Talks

Business
August 5, 2022, 10.13 PM

China Begins to Ship Bullet Trains to Indonesia

Close Ads