BI Predicts Indonesia's Economy To Grow 5.8 Percent In 2021, One Of Which Is Supported By The Job Creation Law

JAKARTA - The Governor of Bank Indonesia Perry Warjiyo said that currently the national economic recovery is underway. In fact, according to him, it is estimated that economic growth will increase.

Perry predicts the Indonesian economy will grow to 4.8 to 5.8 percent next year. The projection issued by Bank Indonesia is much higher than the government's prediction of around 5 percent.

"Economic growth has also increased in all regions, supported by an increase in exports with an improvement in the global economy, consumption with a stimulus in social spending from the government, investment with a stimulus for capital spending, and private investment with the Job Creation Act. As well as increased human mobility with vaccinations. , "he said, at the 2020 Bank Indonesia Annual Meeting, Thursday, December 3.

Furthermore, Perry said, this increase in household consumption is indeed good news. The reason is that household consumption is the motor of economic growth in Indonesia.

The improvement in household consumption is in line with the social spending stimulus introduced by the government through the social safety net program in the national economic recovery program (PEN).

Perry explained that national economic recovery in 2021 can be realized by strengthening synergies through one prerequisite and five strategies. Meanwhile, one of the prerequisites in question is vaccination and the discipline of the COVID-19 protocol.

Meanwhile, the five policy response strategies are, first, opening up productive and safe sectors. Second, the acceleration of fiscal stimulus. Third, increasing credit from the demand and supply side.

"Fourth, the sustainability of monetary and macroprudential stimuli. Fifth, digitalization of the economy and finance, especially MSMEs (Micro, Small and Medium Enterprises)," he said.