Bank Indonesia Optimistic Of Higher 2022 Economic Growth

JAKARTA - Bank Indonesia (BI) responded to a report from the Central Statistics Agency (BPS) which stated that Indonesia's economic growth throughout 2021 was 3.69 percent.

Head of the BI Communications Department Erwin Haryono said last year's achievement was better than the 2020 period which was 2.07 percent.

"Going forward, the domestic economy is expected to grow even higher in 2022, supported by accelerated vaccinations, wider economic openings, and continued policy stimulus from Bank Indonesia, the government and other relevant authorities," he said in a written statement quoted on Wednesday, February 9.

According to Erwin, almost all components of gross domestic product (GDP) in the fourth quarter of 2021 grew positively and were higher than the growth in the previous quarter.

He said, household consumption grew 3.55 percent year-on-year (yoy), far above the previous quarter's achievement of 1.02 percent in line with the increase in community mobility in various parts of Indonesia. Investment grew by 4.49 percent, supported by non-construction investment.

The government's consumption performance was recorded at 5.25 percent driven by accelerated spending for the ongoing national economic recovery program, including the handling of COVID-19.

“From the field of view, business growth is positive, especially in the processing, trade and construction industries. Meanwhile, the performance of business fields related to mobility is in the sector of providing accommodation and food and drink, as well as transportation and warehousing which have also shown improvement," he said.

Spatially, improvements in national economic growth in 2021 will occur in almost all regions, with the highest growth recorded in the Sulawesi-Maluku-Papua (Sulampua) region, followed by Java, Sumatra and Kalimantan.