Post-Minister Of Airlangga Optimistic Economic Growth Soars 7 Percent

Coordinating Minister for Economic Affairs Airlangga Hartarto (right) gave a press statement some time ago (Photo: Cabinet Secretariat)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto believes indonesia's economic growth during the second quarter of 2021 will be at the level of 7 percent.

The tone of optimism he conveyed when holding a virtual talkshow titled Anticipation of Community Mobility and Prevention of Spikes in COVID-19 Cases After Eid Holidays, Saturday, May 15.

According to him, a number of recovery indicators have begun to appear today, including the improvement in growth figures in the last four quarters.

"Although still in minus 0.74 percent in the first quarter of 2021, the trend continues to be positive by forming a V curve and is expected to reach 7 percent in the second quarter of 2021," he said.

Another thing he explained is about the increase in purchasing manufacturing index (PMI) and purchasing power indicators shown by the improvement of the Consumer Confidence Index (CPI).

"Export and import activity has also improved," he said.

In addition, another assumption he presented was the government's initiative to boost the fiscal budget absorption sector.

"Government spending is also positive," he added.

Then, the industrial sector also made the confidence to achieve positive results in the second trimester of the year become more real.

"With the PPnBM (Luxury Goods Sales Tax) borne by this government shows good results with a high increase (in car sales), "he explained

Furthermore, Airlangga predicts that in the future the prices of various leading commodities will continue to crawl up and this plays an important role in boosting the national economy.

"Commodity prices will drive economic improvements, such as palm oil, nickel, rubber, and coal," he said.

In order to maintain this growth momentum, Airlangga advised people to limit unnecessary mobility after Eid al-Fitr this year so that the spread of COVID-19 does not occur.