Rising investment to boost fourth-quarter growth: vice minister

Investment, which has begun to show an upward trend, will be one of the engines of national economic growth in the fourth quarter of 2021, Vice Finance Minister Suahasil Nazara has said.

“As the spread of COVID-19 has begun to decline in Indonesia, it has encouraged investors to invest (in the country),” he said at a media dialog in Jayapura, Papua, on Saturday.

The high investment was also visible from the Purchasing Managers’ Index (PMI) in September 2021, which returned to the expansion level of 52.2 after declining to the level of 43.7 in August 2021 due to a spike in COVID-19 cases, he noted.

The transmission of the Delta variant of COVID-19 began to decline in September 2021, thereby increasing the mobility of people, he said.

With the rising mobility of individuals, the economy will hopefully improve steadily and recover by the end of this year, he added.

“The risk which once cast a shadow (on the economy) in the third quarter has been passed,” Nazara remarked.

In addition to rising investment, the government’s spending will also boost fourth-quarter economic growth, he projected. Normally, the government pushes its spending at the end of the year, he explained.

Rising exports and imports will also boost fourth-quarter economic growth as there has been a massive shortage of shipping containers due to the pandemic, he said.

“These are what we can expect in the fourth quarter so we must pass it through by maintaining the health protocols and preventing transmission, and the expected economic growth will be achieved,” he added.

Source: Antara News