Good News From Airlangga: Indonesia's Economy Will Grow By 7 Percent In The Second Quarter Of 2021

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Of the Coordinating Ministry for the Economy)

JAKARTA - The Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the realization of growth in the first quarter of 2021 was minus 0.74 percent (yoy), indicating that the Indonesian economy is moving towards a positive trend after last year's deep contraction.

"The economic recovery is visible and confirms that we are on a positive trend and this is the curve in the V curve as in other countries," he said at a press conference in Jakarta, quoted from Antara, Wednesday, May 5.

Airlangga said that Indonesia's economy is heading for a positive trend, which can also be seen from the constant prices in the first quarter of 2021, which have a Gross Domestic Product (GDP) of IDR 2,703 trillion or close to the position of the first quarter of 2020.

Then, from the demand side, it is also heading for a better direction, such as household consumption which is minus 2.23 percent or an increase compared to the fourth quarter of 2020 and government consumption which reached 2.96 percent.

Therefore, Airlangga is optimistic that in the second quarter of this year the Indonesian economy will be able to grow in the range of 6.9 percent to 7 percent considering that the second quarter of 2020 has a relatively low growth base.

Moreover, the constant price for the second quarter of 2020, which was only IDR 2,589.8 trillion, is also a very low basis, which means that the realization of the first quarter of 2021 is 5.62 percent higher.

"Of course this is very low and if our GDP at constant prices is the same as what was done in the first quarter then it would have jumped 5.62 percent," he said.