Economic Growth In The Second Quarter Of Moncer, Sri Mulyani's Subordinates 'Applaud': As Predicted

Illustrations (Photo: Doc. VOI)

JAKARTA - Head of the Fiscal Policy Agency of the Ministry of Finance (Kemenkeu) Febrio Kacaribu said the economic performance in the second quarter of 2021 grew high with a record of 7.07 percent year-on-year (yoy) thanks to the right government policy strategy.

“This growth is in line with previous predictions by the Ministry of Finance. This proves that the direction and strategy of recovery has been running and is actually happening,” he said in a press statement, Thursday, August 5.

According to Febrio, the economic recovery has occurred evenly. Consumption, Investment, Export and Import all experienced high growth.

"People's confidence to carry out activities continues to increase and encourages growth in household consumption," he said.

In addition, investment and production activities are also able to move in harmony in strengthening the trend of economic growth. Exports and imports are said to have grown very high and are the response of business actors in taking advantage of the global economic recovery.

"From the production side, national leading sectors such as manufacturing, trade, construction and transportation were able to record quite strong growth," he added.

Febrio added that the government's role is also to support the continued economic recovery and improvement of community welfare indicators. He said, fiscal policy support through APBN instruments had worked very hard to support efforts to deal with the pandemic and strengthen economic recovery.

"The government's countercyclical spending policies, particularly through the National Economic Recovery Program (PEN), have been on-track in protecting the poor and vulnerable from being affected, as well as stimulating the business sector to return to positive growth in the second quarter of 2021," he explained.

Meanwhile, the trend of increasing COVID-19 cases as a result of the emergence of the delta variant was responded to quickly and measurably so that the potential impact could be mitigated both in protecting the public and in maintaining the momentum of economic recovery which is getting stronger.

The emergency brake policy with the imposition of Community Activity Restrictions (PPKM) Level 4 is a necessary step so that the transmission rate does not escalate and the pandemic curve can decrease again.

This mobility restriction policy is temporary and continues to be evaluated periodically to adjust the restriction level according to the development of pandemic control parameters," said Febrio.

Sri Mulyani's subordinate also explained that household consumption was able to grow 5.93 percent annually.

"The level of public confidence that continues to recover as well as the momentum of Ramadan and Eid al-Fitr are the main factors for the recovery of household consumption activities," concluded Febrio.