JAKARTA - Bank Indonesia (BI) assesses that the flood disaster that hit a number of areas in Aceh, North Sumatra, and West Sumatra also affected economic growth performance.
Deputy Governor of Bank Indonesia (BI) Aida S Budiman explained that the flood caused the cessation of economic activity for approximately 32 days and this condition is estimated to have an impact on a decrease in national economic growth by 0.017 percent.
"The method used is to see the loss of economic activity for 32 days and the impact on the economy is indeed somewhat negative, but because it is still a provisional calculation, in this year's GDP, the estimate is only minus 0.017 percent," he said in a press conference, Wednesday, December 17.
Aida said that the analysis of the economic impact of disasters does not only look at one aspect, but includes various factors, such as asset damage, productivity decline due to the cessation of economic activities, to the potential positive effects of the post-disaster reconstruction process.
He added that currently, BI is still coordinating with various parties to complete the required data, so that the assessment carried out is not final.
Aida also conveyed that BI, including through its representative offices in the regions, continues to support the steps of the central and regional governments in alleviating the burden of affected people, one of the focuses is to pay attention to the potential scarcity of basic needs and its impact on the economy.
Aida emphasized that the calculation of the impact of disasters is a complex process, because it not only concerns economic aspects, but also various other social consequences.
However, he conveyed that BI remained optimistic that economic growth in the fourth quarter would be better than the third quarter of 2025 which was recorded at 5.03 percent.
"In this range this year it will be 4.7 percent to 5.5 percent, and in 2026 it will be 4.9 percent to 5.7 percent. Inflation is also maintained in 2025 slightly above the midpoint of the target of 2.5 percent plus minus 1 percent and so is in 2026," he concluded.
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