Commodity Prices Rising, Economic Growth Projection Of NTT Revised To Down To 2.8-3.6 Percent

Bank Indonesia NTT representative office. (Photo: Doc. Antara)

The Bank Indonesia (BI) Representative Office of East Nusa Tenggara Province estimates that the overall economy of NTT in 2022 will grow in the range of 2.8-3.6 percent year on year (yoy).

"The NTT economy is estimated to grow in the range of 2.8-3.6 percent or an increase compared to the realization of economic growth in 2021," said Acting Head of BI Representative for NTT Province, Agus Sistyo Widjajati in a statement quoted by Antara, Monday, October 24.

The projected economic growth of NTT in 2022 decreased from the previous projections in a row from 4.95-5.75 percent to 4.72-5.52 percent.

Economic growth is projected to decline, he said, due to the challenges of global conditions in the form of rising commodity prices.

He explained that in terms of expenditure, the acceleration of NTT's economic performance was supported by increased private consumption and investment in line with the continuation of the vaccination program as a game changer in economic recovery.

Meanwhile, in terms of business fields, growth is estimated to be supported by the expansion of government programs that encourage agricultural, large and retail trade in line with the normlaization of community mobility.

Touching on inflationary pressures, he said in 2022 this is expected to increase compared to inflation in the previous year driven by rising food commodity prices and air transportation.

"Based on the disgergas, inflationary pressures are expected to occur in volatile food and administrative prices components," he said.

He said that his party continues to coordinate policies with local governments in NTT through the Regional Inflation Control Team (TPID) in maintaining inflation expectations and minimizing the risk of inflation.