Indonesia’s economic growth indicates positive trend: Hartarto

Indonesia’s economic growth recorded at minus 0.74 percent year-on-year (yoy) in the 2021 first quarter indicates its economy moving toward a positive trend following last year’s deep contraction, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.

“Economic recovery is visible, and it is confirmed that we are on a positive trend, and the curve is the V curve as in various other countries,” Hartarto noted at a press conference here on Wednesday.

The minister is upbeat that Indonesia’s economy is heading toward a positive trend, also apparent from the constant prices in the first quarter of 2021, with a gross domestic product (GDP) of Rp2,703 trillion or approaching the position of the first quarter of 2020.

The demand side is also heading in a better direction, with the household consumption rate at minus 2.23 percent, or an increase as compared to that in the fourth quarter of 2020, and government consumption reaching 2.96 percent.

Hence, Hartarto is optimistic that in the second quarter of this year, the Indonesian economy will be able to grow in the range of 6.9 percent to seven percent on account of a relatively low growth base in the second quarter of 2020.

Moreover, the constant prices for the second quarter of 2020, only at Rp2,589.8 trillion, is also a very low basis, thereby translating to the fact that realization in the first quarter of 2021 is 5.62 percent higher.

“Of course, this is very low and if our GDP remains constant, prices will be the same as those in the first quarter, so it would jump 5.62 percent,” he remarked.

Source: Antara News