Jokowi 'shows Off' Indonesia's Inflation Rate Is Better Than The United States And Germany

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Setpres)

JAKARTA - President Joko Widodo (Jokowi) acknowledged that domestic economic growth in the third and fourth quarters of this year will be corrected. This is because the government has adopted a policy to impose restrictions on community activities (PPKM).

"Our economic growth in the second quarter of 2021 is 7.07 percent. However, we remain vigilant that economic growth in the third and fourth quarters of 2021 will experience the impact of our PPKM policies," he said at the Opening and National Seminar of ISEI 2021, Jakarta, Tuesday. , August 31.

However, according to Jokowi, other economic indicators such as inflation are still relatively under control and maintained at 1.5 percent. Inflation in the country is considered to be still under control compared to other countries.

"Inflation is still under control at 1.5 percent. The United States, which is usually only 0.5 percent, is already at 5.4 percent. Germany is also at 3.8 percent, usually below 1 percent," he said.

For your information, the Central Statistics Agency (BPS) noted that the development of Indonesia's inflation rate from January to July 2021 was in the range of 1.33 to 1.68 percent on an annual basis or year on year (yoy). BPS also reported, based on other expenditures, namely gross fixed capital formation (PMTB) grew by 7.54 percent yoy.

The cause of PMTB or investment growth is that the realization of capital expenditure in the second quarter of 2021 in the second quarter of 2021 grew 45.56 percent compared to the second quarter of 2020, and the realization of BKPM's investment in the second quarter of 2021 grew 16.21 percent compared to the second quarter of 2020.

Then, other expenditures, namely exports, grew by 31.78 percent yoy. Export growth was due to the increase in the economy of most of Indonesia's main trading partner countries. Household consumption grew by 5.93 percent yoy, and consumption of LNPRT grew by 4.12 percent yoy.

As for what caused household consumption to grow, it can be seen from the value of the consumer confidence index (IKK) of 104.42 while in the second quarter of 2020 it was 82.14.

"Our export figure in the second quarter also rose by 31.8 percent, public consumption stood at 5.9 percent. Investment grew 7.5 percent very well. The government's confidence index rose from 97.6 to 115.6," he said.

The former governor of DKI Jakarta also hopes that the national and global economy will continue to improve in the near future. He said various projections of international institutions predict that the global economy this year and next year will improve.

"The IMF (International Monetary Fund) predicts global economic growth at 6.0 percent and 4.9 percent for 2021 and 2022," he said.

Jokowi said that the signal of global economic recovery was already very good, from the positive growth of global manufacturing activity, the continued expansion of imports and exports, to rising commodity prices.

"We are grateful for the synergy of various parties for pain sharing, both fiscal and monetary policies and maintaining the brake and gas balance between the economy and health," he said.