Bad News From Bank Indonesia: Maluku Economic Growth Is Declining Minus 1.88 Percent In The First Quarter Of 2021

JAKARTA - Bank Indonesia (BI) Maluku Province noted that the economic performance of Maluku Province in the first quarter of 2021 contracted 1.88 percent (yoy), better than the fourth quarter of 2020 which contracted by 3.42 percent (yoy).

"The Maluku economic growth in the first quarter of 2021 was still lower than the national economic growth which contracted 0.74 percent", said Head of the BI Representative Office for Maluku Province Noviarsano Manullang in Ambon, quoted from Antara, Thursday, June 24.

He said, nominally, the Gross Regional Domestic Product (GRDP) at current prices (ADHB) of Maluku Province in the first quarter of 2021 was recorded at IDR 11.56 trillion, while GRDP at constant prices (ADHK) was IDR 7.64 trillion.

On a quarterly basis, Maluku's economy contracted 1.20 percent (qtq), an increase compared to the fourth quarter which contracted 1.24 percent (qtq).

From the supply side, the contraction of Maluku's economic performance in the first quarter of 2021 was caused by three main business fields (LU) which had the largest contribution, namely transportation and warehousing contracting 15.50 percent, trade and repairs contracting 3.13 percent, agriculture, forestry, and marine affairs contracting 1.36 percent.

"From the demand side, Maluku's economic contraction in the first quarter of 2021 was caused by almost all components. The component of demand that was still recorded was net exports between regions (NEAD) which grew by 4.50 percent", he said.

Gross Fixed Capital Formation (PMTDB) and changes in inventory also recorded positive changes, respectively by 2.34 percent and 0.85 percent. Meanwhile, the growth contraction occurred in the component of foreign exports -17.18 percent.

Noviarsano said the economic growth of Maluku Province in the second quarter of 2021 is predicted to show an improvement trend, although it is still overshadowed by the impact of the COVID-19 pandemic.

From the supply side, Maluku's economic performance in the second quarter of 2021 will be driven by improvements in agricultural, forestry, and fishery business fieldwork, government administration work, and trade as well as reparations.

The performance of agriculture, forestry, and fisheries will be supported by improvement in commodity prices, in line with rising inflationary pressures for foodstuffs in line with improving public consumption.

Trade LU performance is predicted to be supported by increased public consumption during Ramadan and Eid al-Fitr celebrations in May. Meanwhile, the performance of government administration LU will be driven by the efforts of local governments in realizing operational expenditures for personnel, goods, and services in the second quarter.

In addition, the acceleration of regional budget (APBD) and state budget (APBN) expenditures for social assistance in handling COVID-19 will also boost the performance of government administrative LU.

"Entering the second quarter of 2021, Maluku's economic growth is predicted to improve compared to the previous quarter", said Noviarsano Manullang.