Minister positive about Indonesia’s Q4 economic growth

Jakarta (VNA) – The Indonesian economy is expected to grow in the range of minus 2 percent to positive 0.6 percent in the fourth quarter of this year, Coordinating Minister for Economic Affairs Airlangga Hartarto said on December 15.

The projected growth could be achieved if the momentum for recovery that began in the third quarter – when the economy showed a smaller contraction of 3.49 percent compared to 5.32 percent in the second quarter – is maintained, Airlangga stated.

Economic growth data for the second and third quarter have shown that Indonesia has begun to bounce back after hitting rock bottom, so the chance for recovery needs to be maintained, he stressed.

Indonesia has an opportunity for economic recovery and positive growth of 0.6 percent given the increase in domestic demand and consumer confidence, as reflected in increased household consumption, the minister explained.

Economic improvement in developed and developing countries related to the Purchasing Managers Index (PMI) shows manufacturing in various countries has started to be positive, and in Indonesia it has also reached 50.6, he said.

Not only that, the inflation rate that was maintained at the level of 1.59 percent year-on-year in November could also be a driving force for better growth in the fourth quarter, he added.

Several other sectors are also likely to contribute to positive growth, such as agriculture, plantations, education, information and telecommunications, health, and social activities, the minister said.

In addition, the manufacturing, trade and consumption industries, which have a big contribution to GDP, are also experiencing positive growth, he noted.

Meanwhile, in the financial market, despite a decline, the JCI (Jakarta Composite Index) indicator has returned to its pre-COVID-19 level of 5,900, and the IDR/USD exchange rate has strengthened again to 14,100 IDR, Hartarto observed.

Furthermore, a positive trade balance will continue in 2020, the minister continued, the trade surplus stood at 3.61 billion USD in October, and was recorded at 17.07 billion USD for the January-October period./.