Pandemic Is Still Ongoing, Airlangga Is Optimistic That 2021's Economy Will Grow By 5.5 Percent

JAKARTA - The Coordinating Minister for Economic Affairs Airlangga Hartarto predicts Indonesia's economic growth of 4.5 percent to 5.5 percent in 2021. This prediction is a form of optimism for the government during the COVID-19 pandemic.

Not only that, Airlangga also believes that in the first quarter of 2021 the Indonesian economy can grow at 1.6 to 2.1 percent.

"We certainly hope that there is still positive growth in the first quarter, the range is 1.6 to 2.1 percent. Well, this is indeed our homework to encourage the household consumption sector to grow," he said, in a video conference in Jakarta, Friday. , February 5.

In the first quarter of this year, said Airlangga, the government is targeting household consumption to grow 1.3 to 1.8 percent. In addition, government consumption is also targeted to increase because it contributes significantly to economic growth.

"In the first quarter, usually government consumption is low, namely 3 to 4 percent. So we encourage this if it can increase by 4 to 5 percent," he said.

As is known, the Indonesian economy throughout 2020 contracted 2.07 percent. Meanwhile, in the fourth quarter the Indonesian economy was minus 2.19 percent. However, said Airlangga, this acquisition is a positive signal for economic growth in 2021.

"Positive signals of economic recovery have been seen in the fourth quarter of 2020, where of course the quarter to quarter figures have increased slightly again. Of course this will continue to be considered and this improvement cannot be separated from government intervention," he said.

As is known, in the second quarter of 2020 the Indonesian economy contracted very deeply, namely 5.32 percent. Then, in the third quarter of 2020 the economy showed improvement, the contraction decreased to 3.49 percent and in the fourth quarter of 2020 minus 2.19 percent on an annual basis.

Meanwhile, Indonesia's economic growth contracted by 2.07 percent throughout 2020. This was due to negative growth in the last three consecutive quarters that caused Indonesia to still sink into the brink of recession.

Previously, the Head of BPS Suhariyanto revealed that growth in the fourth quarter was still experiencing contraction of 2.19 percent, but when compared to the previous quarter, this growth showed improvement.

"There are improvements although not as expected, therefore we need to evaluate what needs to be strengthened," said Suhariyanto, Friday, February 5.