BI Optimistic NTB Economic Growth To Reach 6.5 To 7.5 Percent In 2022

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) is optimistic that economic growth in West Nusa Tenggara (NTB) can reach 6.5-7.5 percent in 2022.

This confidence is because the business field indicator that contributes to gross regional domestic product is still showing a positive trend.

"Because the indicators of economic growth are still good, we do not have any temporary revisions to economic growth in NTB," said Deputy Head of the BI Representative Office for NTB Province, Achmad Fauzi, as quoted by ANTARA, Friday, July 29.

He said that he had not revised the economic growth target of NTB in 2022 as was done by the central Bank Indonesia, which had revised Indonesia's economic growth to 4.5-5.3 percent from the original 4.7-5.5 percent.

This was due to global economic conditions as a result of Russia's war with Ukraine.

Specifically in NTB, his party sees that the movement of business fields contributing to gross regional domestic product (GRDP) is still in a positive trend, such as the agricultural sector which is marked by rice which is not a contributor to inflation because the price is relatively good and the supply is also smooth.

Furthermore, exports of mining concentrates are still good, where copper concentrate production in the third quarter of 2022 is estimated to grow by 79.41 percent (yoy), in line with the increase in mining capacity utilization which boosts production and the recovery rate increases.

Tourism and transportation, continued Fauzi, are also getting better, where the demand for air transportation is increasing, especially with the existence of direct international routes to Lombok Airport.

However, on the one hand there is an increase in the price of airline tickets.

The prediction of positive NTB economic growth in 2022 is also seen from very good trade indicators. This is reflected in the consumer survey figures, namely the current economic condition index, the consumer expectation index and the consumer confidence index, all of which are at 100 percent.

"Community movements based on the google mobility report also showed a significant increase in July 2022 which was observed to have passed the baseline. The increasing trend from January to July 2022 is in line with the increasingly controlled COVID-19 cases and the loosening of mobility," he said.

He mentioned that the economic condition of NTB which was already quite good was also seen from the economic growth in the third quarter of 2022 which reached 7.76 percent.

However, this growth was overshadowed by relatively high inflation. In June 2022, NTB experienced inflation of 5.37 percent (yoy), higher than the national record of 4.35 percent (yoy).

Inflation occurred mainly due to the increase in air freight rates which reached 10.48 percent (yoy), and the foodstuff category by 8.82 percent.

"People see that the economic conditions in NTB are already good, marked by economic growth at 7.76 percent, but the quality must be maintained, meaning inflation must be suppressed," said Fauzi.

He said efforts to maintain high and inclusive economic growth in NTB were carried out through increasing community mobility in the tourism sector, one of which was by way of higher third booster vaccination incentives.

In addition, expansion or opening of other priority sectors can be carried out, namely agriculture, plantations, fisheries, creative and processed industries.

"We are also intensively conducting low-cost market operations in collaboration with the Provincial and Regency/City Inflation Controlling Teams," he said.