World Bank Cuts Indonesia's Economic Growth Thin, Government Claims Evidence Of Good Resilience

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The World Bank released the latest report on the outlook for Indonesia's economic growth this year. The minutes stated that Indonesia's growth rate decreased by 0.1 percent from the previous projection to 5.1 percent.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that the World Bank's figure was still within the government's projection range of 4.8 to 5.5 percent.

"Indonesia's economic growth has become one of the most resilient", he said in a press statement today, Wednesday, June 8.

According to Febrio, the World Bank stated that the Indonesian economy would receive a boost from rising commodity prices.

"The Indonesian economy continues to show resilience in the midst of global turmoil", he said.

Furthermore, he said that Indonesia was one of the few countries that could return output to pre-pandemic levels by 2021.

"Domestic economic performance this year also continues to strengthen, among others, supported by the ongoing pandemic situation", he stressed.

To note, a conducive pandemic situation is one of the important prerequisites for maintaining public trust in carrying out social-economic activities. One way that the government will continue to take is to encourage vaccination, which has now reached 74 percent of the population for the first dose and 62.1 percent for the complete dose.

“Currently, global economic risks have shifted from a pandemic crisis to potential energy, food, and financial crisis. The Indonesian government will continue to maintain that domestic economic performance continues to strengthen even in the midst of various global challenges", he explained.

Febrio also ensured that the APBN will also continue to be directed to become an important instrument in responding to the economic dynamics that occur, including being a shock absorber.

"In the midst of increasing global risks, the state budget focuses on protecting people's purchasing power, especially the vulnerable groups, and maintaining economic recovery", he said.

For information, the World Bank itself has cut its global economic growth projection significantly from the previous 5.7 percent in 2021 to only 2.9 percent in 2022.