Indonesia forecasts 8.3 percent growth in Q2

Indonesia’s economic growth is forecast to reach between 7.1 to 8.3 percent in the second quarter this year (Photo: Reuters)

Jakarta, (VNA) – Indonesian Finance Minister Sri Mulyani Indrawati said at a recent congressional hearing with the House of Representatives’ Commission XI that Indonesia’s economic growth is forecast to reach between 7.1 to 8.3 percent in the second quarter this year.

The forecast is higher than the 7 percent projection by President Joko Widodo. 

The minister said the latest forecast, much higher than the negative 0.7 percent growth recorded in Q1, is made based on expected increases in indexes. Household consumption, which contributes the greatest to growth, is projected to grow 6 – 6.8 percent, government spending 8.1 - 9.7 percent, investment 9.4 - 11.1 percent, export 14.9 – 19.7 percent and imports 13 - 19.7 percent.

According to the minister, several indexes have increased in April and May, including commodity prices in the world market, the global purchasing managers’ index (PMI) reaching the highest since April 2010.

Indonesia’s consumer confidence index (CCI) also saw a jump from 93.4 to 101.5 in April, and energy consumption rose by 6.3 percent compared to a negative growth in previous quarters.

In addition, both imports and exports have seen an increase and lastly, the COVID-19 situation in Indonesia is basically under control.

However, Sri Mulyani’s forecast on the economic growth for the entire 2021 remains unchanged at 4.5 – 5.3 percent./.