Indonesia's Economy Is Predicted To Grow 5 Percent In 2022, With The Assumption Of No Spike Of COVID-19 Cases

Illustration. (Photo: Unsplash)

JAKARTA - The condition of the Indonesian economy in 2022 is predicted to grow in the range of 4 to 5 percent. This is driven by the performance of a number of economic indicators which are much better than this year.

The Executive Director of CORE Indonesia, Mohammad Faisal, believes that the Indonesian economy next year will be much better. However, Faisal said that the Indonesian economy would still be overshadowed by uncertainty, especially by the spread of the Omicron variant of the COVID-19 virus.

Faisal said that the economic growth prediction issued by CORE Indonesia was below the government's prediction of 5.2 percent economic growth.

"For 2022, we have projected that economic growth next year will grow by 4-5 percent and the potential for growth in 2022 is even better," he said at the 'CORE Year End Economic Reflection' event, Wednesday, December 29.

Faisal said the projection was made with the assumption that the control of the COVID-19 pandemic in the country was relatively good. So, people will not hold back their mobility as happened in mid-2021.

"Secondly, there was no spike in cases beyond expectations from the Omicron variant," he said.

According to Faisal, Indonesia's economic growth could actually be higher this year, but it was restrained by several government policies that tried to restore the deficit to 4 percent. Such as the drastic reduction of the national economic development budget (PEN).

"But don't forget that there are also several policies in 2022 that have the potential to hold the pace of economic growth to a higher level, because physically the direction is tighter, the deficit is lower and spending has been further reduced," he said.