Erick Thohir Optimistic Economic Growth In 2021 Achieves Target

Minister of BUMN, Erick Thohir. (Photo: Ministry of BUMN)

JAKARTA - The Chief Executive of the Committee for Handling COVID-19 and National Economic Recovery, Erick Thohir is optimistic that Indonesia's economic growth will increase in 2021. The government is targeting an economic growth range of 4.5-5.5 percent.

According to Erick Thohir, confidence in Indonesia's economic growth is also based on predictions from a number of world institutions. The International Monetary Fund (IMF) predicts that Indonesia's economy will grow 6.1 percent, the World Bank is 4.8 percent, and the Organization for Economic Cooperation and Development (OECD) is 5.5 percent.

"Therefore, Indonesia is targeting growth of 4.5 to 5.5 percent," said Erick in the FMB9 discussion which was broadcast online, Saturday, August 15.

In addition, Indonesia's economic growth is believed to have increased due to President Joko Widodo's (Jokowi) decision not to implement a regional quarantine or lockdown policy at the beginning of the COVID-19 pandemic.

When compared to neighboring countries affected by COVID-19, Indonesia's economic growth, called Erick Thohir, is still much better.

"If we compare it, Malaysia's economic growth is -17.1, the Philippines -16.5, Singapore -12.6. So the President's policy is very correct," said Erick.

Apart from the economic issue, Erick responded to the views of a number of parties who considered Indonesia unable to overcome COVID-19. Yet according to Erick, Indonesia's recovery rate is above 60 percent.

"Earlier Pak Doni (Doni Monardo) conveyed that our recovery rate compared to other countries is also approximately 65 to 69 percent. So there is nothing wrong with Indonesia," he concluded.

President Jokowi previously targeted Indonesia's economic growth in 2021 to reach 4.5-55 percent. This is based on the assumption of macroeconomic indicators.

"Economic growth is expected to reach 4.5 to 5.5 percent," he said in a speech to the 2021 Financial Note at the DPR, Friday, August 14.

Jokowi hopes that domestic consumption and investment can push the set targets. Therefore, all levels are asked to work well.

"The rate of economic growth is expected to be supported by increased domestic consumption and investment as the main driving forces," he said.

Jokowi explained that as many as 215 countries are facing a difficult time hit by the COVID 19 pandemic. In WHO records, up to August 13, there were more than 20 million cases in the world with the number of deaths in the world as many as 737 thousand people.

According to him, the economic crisis was also the worst in history. In the first quarter of 2020, the country's economic growth called Jokowi was still plus 2.97 percent, but in the second quarter, economic growth was minus 5.32 percent.

"This is the time for us to improve fundamentally, carry out major transformations, carry out big strategies. Big strategies in the fields of economy, law, government, socio-culture including health and education. It's time for us to plow the momentum of the crisis to take a big leap," said Jokowi.