Ramadan And Eid Al-Fitr 2021 Are Predicted To Boost East Java Economy Grows Above 5.3 Percent

Illustration. (Irfan Meidianto/VOI)

JAKARTA - Bank Indonesia (BI) East Java Province predicts Ramadan and Eid Al-Fitr in 2021 will boost local economic growth, with a general increase in the second quarter of 2021 by 2-3 percent, due to the high purchasing power of the community.

Head of BI in East Java, Difi Ahmad Djohansyah admitted, in general, East Java's economic chart is still difficult to predict, because the growth is still dependent on the demand of the community, and purchasing power is still rampant, there has been no significant movement.

"But we are optimistic that the East Java economy will grow above 5.3 percent because the manufacturing industry in East Java has also started to move", said Difi, quoted from Antara, Wednesday, April 14.

Difi is also optimistic that in the Eid Al-Fitr moment in 2021 the East Java economy will be better than Eid Al-Fitr in 2020, although there is still a ban on homecoming, but there is a decrease in the positive number of COVID-19.

"I try to go around hotels and try to ask, it turns out that the occupancy of the hotel is now getting excited. That is when Eid Al-Fitr later, it could be that the East Java economy will rise", he said.

He explained that inflation in East Java is also relatively stable, and shows that public demand has started to appear.

"Compared to inflation last year, public demand really does not exist at all, due to lockdown policies, Large-scale Social Distancing (PSBB), and restrictions on business operating hours. Now this year we are optimistic that East Java's economy will start to climb again", he said.

Based on data from the Central Bureau of Statistics (BPS) East Java, in March 2021 East Java experienced inflation of 0.11 percent, and of the eight CPI cities all experienced inflation, with the highest occurring in Jember Regency at 0.45 percent and the lowest occurring in Malang at 0.08 percent.

Inflation occurred due to rising prices indicated by the rise of most of the spending group index, and out of eleven spending groups, five groups experienced inflation, four groups experienced deflation and two groups did not change.

The highest inflationary spending group was the food, beverage, and tobacco group at 0.77 percent, followed by the recreation, sports, and culture group at 0.12 percent.

The inflation rate for the calendar year march 2021 is 0.65 percent and the year-on-year inflation rate (March 2021 to March 2020) is 1.29 percent.