JAKARTA - At the Bank Indonesia Board of Governors Meeting (RDG) on November 18-19, 2020, Perry Warjiyo, BI Governor, said that domestic economic growth has improved in line with the increasing realization of fiscal stimulus and community mobility, as well as improving global demand.
Indonesia's economy improved in the third quarter of 2020 as reflected in growth of 5.05% (qtq) from a contraction of 4.19% (qtq), or a reduction in growth contraction to 3.49% (yoy) from 5.32% (yoy) in the previous quarter. The increased realization of the stimulus and improved mobility of the people contributed to the gradual improvement in domestic demand for both consumption and investment. Meanwhile, export performance has also improved, driven by global demand, especially from the US and China.
The continued improvement in the domestic economy is reflected in the positive development of a number of indicators in October 2020, such as community mobility, non-food and online retail sales, Manufacturing PMI, and public income. Economic growth is predicted to pick up in 2021 on the back of the improving global economy and accelerated budget realization for the Central and Local Governments, progress on the credit restructuring program, and the continuation of Bank Indonesia monetary and macroprudential stimulus.
Bank Indonesia, through its policy mix, will continue to strengthen synergies with the Government and related authorities so that the various policies adopted are more effective in promoting economic recovery. (LM)