JAKARTA. Bank Indonesia (BI) revises the forecast regarding Indonesia’s economic growth in 2021 to 3.5%-4.3% from 4.1%-5.1%.

In a virtual press conference today (22/7), Perry Warijyo, Bank Indonesia Governor, explains that this estimation is based on the current economic condition, particularly indicated by the declining payment system.

According to Wairjyo, the increasing export activities, fiscal expenditure, and nonbuilding investment have supported the economic recovery in Q2 2021. This recovery is also insinuated by the increasing Real Sales Index and the Prompt Manufacturing Index that reaches the expansive level.

Warijyo predicts that the economic growth in Q3 2021 would slow down due to the government’s policy in restricting the public’s mobility to manage the spread of COVID-19. On the other hand, the growth in Q3 2021 might be driven by the increasing export activities and the boost in fiscal expenditure stimulus, especially for social assistance.

“In Q4, [the economy] is envisioned to be revived, supported by the mobility recovery alongside a higher rate of vaccination and trained health protocols, ongoing fiscal and monetary reliefs, and the enhancement of export activities,” Warijyo further claims. (AM/ZH)