JAKARTA. The Ministry of Finance predicted the Indonesian economic growth rate in Q4 2021 to reach over 5% following the positive momentum of economic recovery.

According to Sri Mulyani, the Minister of Finance, the said projected number is based on the satisfying performance observed in the household consumption sector. This sector is the main contributor to the Gross Domestic Product in terms of expenditure. The increased household consumption was indicated by the Mandiri Spending Index. “If we were to look at Mandiri Spending Index, it showed a strong expansion,” she explained in the December 2021 Performance and Facts of State Budget press conference earlier today (21/12).

Additionally, Mulyani said that the Gross Fixed Capital Formation or investments are projected to proliferate. It was supported by the boosted imports, especially supporting and raw materials as well as capital goods, which reflects an active domestic industry.

“The momentum of economic recovery is once again gained after previously being interrupted by delta variant spread. In 2021, the economy is estimated to increase 3.5% to 4%. In Q4 2021, it might reach over 5% following the rapid acceleration,” Mulyani added. (AM/ZH)