Indonesian Economy Grows 5.44 Percent, Indef Economist: Don't Be Euphoric, The Challenges Ahead Are Tough

Illustration (Photo: Doc. Antara)

JAKARTA - Indonesia's economic growth in the second quarter of 2022 was 5.44 percent.

This gain was much higher than predicted by various institutions including the government.

Even so, the government is asked not to be too euphoric about this achievement.

Deputy Director of Indef, Eko Listyo said, the challenges ahead are much tougher, especially for the third and fourth quarters.

Because, in that quarter there was no momentum for religious holidays or big events like the second quarter. This will have an impact on economic performance.

"We also remind you not to be too euphoric just yet. Because the challenges ahead, especially in the third and fourth quarters are quite large. Especially in the third quarter where the momentum of seasonal luxury, whether it's religious holidays or large events, is relatively non-existent and that has implications too to economic performance," he said, in a virtual discussion, Sunday, August 7.

Eko said that the economic growth in the second quarter of 2022 which reached 5.44 percent was inseparable from the momentum of Eid al-Fitr.

Moreover, he continued, this year the government again allowed Lebaran homecoming after two years of being abolished.

In fact, continued Eko, the government has also provided easing by extending the Eid holiday to 2 weeks. So that the number of homecomers increases higher than in 2019.

"So it can be said that Lebaran is the savior of the economy in the second quarter of 2022. I think it has positive implications for encouraging public consumption. And this is clearly illustrated by the increase in consumption which reached 5.51 percent in the second quarter yoy compared to the second quarter of 2021," he said.

In terms of consumption growth, said Eko, in the first quarter of 2022 it was only 4.3 percent. Meanwhile, in the second quarter of 2022, it increased to 5.51 percent.

"If it (up) 5.51 percent, then there is indeed an acceleration in public consumption, especially household consumption," he explained.

Furthermore, Eko said, from a sectoral perspective, it is very clear that Eid is the savior of the economy. Among other things, it can be seen from the acceleration of transportation and warehousing performance which was able to grow 21.27 percent.

“I think this is also a very big growth. So then push from a sectoral perspective the contribution of the transportation and warehousing sector which is actually the stimulant because of Lebaran," he explained.