After Cabinet Meeting With President Jokowi, Bahlil Is Optimistic That Indonesia's Economy Can Grow Above 5 Percent In 2022: Recession Is Still Far!

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia is optimistic that Indonesia's economic growth in 2022 will be above 5 percent, as well as investment realization which he believes will be able to reach the target of Rp1,200 trillion.

"I just finished a cabinet meeting with the President. For 2022, we are optimistic, God willing, we are optimistic that we can achieve the growth target of above 5 percent for economic growth and investment, God willing, to reach Rp. 1,200 trillion," he said at a press conference, quoted from Antara, Tuesday. August 9th.

According to Bahlil, the Indonesian economy, which reached 5.44 percent yoy in the second quarter of 2022, grew beyond expectations, especially in the midst of uncertain global economic conditions.

The Indonesian economy is also considered capable of growing compared to a number of trading partner countries. Call it the US which only grew 1.6 percent, China with 0.4 percent, South Korea grew only 2.9 percent, India 4.1 percent, to Singapore which only grew 4.8 percent.

On the other hand, the domestic inflation rate was also able to be maintained at a controlled level, namely 4.35 percent in June 2022 (yoy).

According to Bahlil, Indonesia is able to maintain the inflation rate even though many countries are experiencing difficulties due to high inflation. For example, the US with inflation reaching 7.6 percent, Britain with 9.1 percent, Singapore 6.6 percent, Thailand 7.6 percent, even Turkey's inflation was recorded at 78 percent.

"Thank God we are in the middle position too, still good," he said.

Bahlil noted that economic growth of 5.44 percent in the second quarter of 2022 was supported by the household consumption sector which grew by around 5.51 percent on an annual basis. Meanwhile, investment growth or gross fixed capital formation (PMTB) grew by 3.07 percent although it slowed down from the previous quarter.

"I associate this household consumption with people's purchasing power. What I emphasize is that there is certainty of income and employment opportunities. Job opportunities are created by the private sector. And the government is here to create jobs through the business sector, one of the instruments is investment," he explained. .

Furthermore, Bahlil assessed that Indonesia's positive performance must be maintained. He also reminded that good economic performance must be maintained with several conditions, namely political stability, cohesiveness in collaboration, speed of legal certainty and collaboration between large entrepreneurs, MSMEs and regional entrepreneurs.

He also assessed that the assumption that Indonesia would enter a recession was still very far away.

"Recession is still far away. Economic growth is good at 5.44 percent, inflation is still under control at 4.35 percent, trade balance surplus is 15 billion US dollars, our investment is growing, and consumption is growing," he said.