Indonesia’s economy likely to grow 7 percent in Q2: Minister hinh anh 1People go shopping at a market in Jakarta, Indonesia (Photo: Xinhua/VNA)
Hanoi (VNA) – The Indonesian economy is likely to expand by 7 percent in the second quarter of 2021, following an upward trend in the disbursement of foreign direct investment (FDI) and an improved consumer confidence index.

Coordinating Minister for Economic Affairs Airlangga Hartarto said by the end of March 2021, the FDI disbursement had reached 54.6 percent while the consumer confidence index of those with monthly expenses below 5 million Rp (352 USD) was recorded at 90.1, which had inched towards the normal level of 100.

A positive trend was also apparent in the growth of Indonesia's exports and imports, gross fixed capital formation (GFCF), and the government spending, he noted, adding that a surge in the prices of commodities, such as palm oil, rubber, nickel, copper, and coal, had also bolstered the government's endeavours to facilitate economic recovery.

Earlier, Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for National Entrepreneur Development Arsjad Rasjid said the largest Southeast Asian economy is already on the right track and is headed towards positive growth.

According to the Central Statistics Agency (BPS) of Indonesia, the country’s GDP still contracted 0.74 percent in Q1, lower than the growth of 2.9 percent in the corresponding period last year but improving from the figure of minus 2.19 percent in Q4 of 2020.

Other positive factors were reported in several business sectors that experienced positive growth, including information and communications, at 8.72 percent; water supply, waste management, waste and recycling, at 5.49 percent; health services and social activities, at 3.64 percent.

Based on the data, Arsjad is optimistic that economic growth in Q2 of 2021 would be higher with an initial estimate of around 5-7 percent as compared to the same period last year./.