The Pandemic Has Not Been Over, Coordinating Minister Airlangga Is Optimistic That Economic Growth Will Reach The Level Of 5.5 Percent In 2021

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Coordinating Ministry for Economic Affairs)

JAKARTA - The Coordinating Minister for Economic Affairs Airlangga Hartarto believes Indonesia's economic growth in 2021 can reach the level of 5.5 percent even though the COVID-19 pandemic has not ended.

Airlangga's projection is much more optimistic than the forecasts of various international institutions which say that Indonesia's economy in 2021 will be at most stagnant growth at the level of 4.8 percent.

"Various institutions have said that Indonesia's growth in 2021 is between 4.4 and 4.8 percent. Indonesia itself estimates 4.5 to 5.5 percent," he said, in a webinar entitled 'COVID-19 and the Acceleration of National Economic Recovery', Wednesday. , January 27th.

Airlangga said his belief in economic growth was motivated by the presence of the COVID-19 vaccine, which has started to be injected gradually from priority groups to the community. With the vaccine, he said, it could increase confidence so that finally it could encourage people's economic activities to move again like before the pandemic.

International institutions also project that the global economy this year will grow positively compared to 2020. Airlangga said, this would certainly be a positive signal for the Indonesian economy.

The details are that world economic growth this year will grow 5.5 percent, world trade will grow 8.5 percent, ASEAN will grow 7.5 percent. Various commodities that were sluggish during the pandemic are projected to grow positively, oil demand will increase by 21.2 percent and non-oil to 12.8 percent.

"These are steps that show that we have optimism for the period 2021 and 2022," he said.

Airlangga said, another factor that will drive Indonesia's economy in 2021 is the handling of the COVID-19 pandemic. Even though cases continue to grow, 3M and 3T's disciplinary campaigns are being carried out and the availability of a COVID-19 vaccine is believed to be able to reduce the number of cases significantly.

"The government sees that the sectors that are important to Indonesia are consumption, investment acceleration and exports. This is a lever for the national economy in addition to government spending. So in 2020, both consumption and investment will decline, but this time the government continues to encourage," he said.