Bank Indonesia: Export can Help the Economy Grow in Fourth Quarter of 2021

Saturday, 20-November-2021 21:00

illustration: a worker is sorting dry tobacco for export in Karangpakel, Trucuk, Klaten, Central Java.
Image : ANTARA FOTO/Aloysius Jarot Nugroho/rwa
illustration: a worker is sorting dry tobacco for export in Karangpakel, Trucuk, Klaten, Central Java.

JAKARTA, NETRALNEWS.COM - Bank Indonesia (BI) has ensured that improved export performance in line with improving global demand can help the economy grow positively in the fourth quarter of 2021.

"Economic performance is estimated to increase in the fourth quarter of 2021, supported by improved export performance," said IGP Wira Kusuma, Director of the Department of Economic and Monetary Policy at Bank Indonesia, during a training for BI journalists in Surabaya, on Saturday (11/20/2021).

Wira Kusuma ensured that the increase in export performance also occurred in line with the improvement in community mobility, retail sales, consumer expectations, and the purchasing managers' index (PMI) of the manufacturing sector in November 2021.

In addition, economic growth in the fourth quarter of 2021 will also be supported by fiscal spending by the Indonesian government, especially the PEN (National Economic Recovery) program, which could have an impact on improving consumption and investment.

On the same occasion, senior economist Sunarsip said that the domestic demand sector, such as household consumption and investment, could be a new source of growth until 2022.

Sunarsip said the strengthening on the domestic side can be done through fiscal support to economic sectors that have multiplier effect, such as housing, manufacturing, tourism, and agriculture.

"The slowest-growing tourism sector could be a game changer for sources of growth in 2021, including agriculture which has not contracted during the pandemic," he said.

Sunarsip added that the effectiveness of macroprudential and microprudential policies to encourage the transmission of monetary policy to bank credit is also needed to encourage investments.

"The response from the business world to the decline in lending rates is still low, which is reflected in the low growth of bank credit and curbing inflation," said Chief Economist of The Indonesia Economic Intelligence.

Previously, the economic performance in the third quarter of 2021 recorded a positive growth of 3.51 percent (yoy), although lower than the previous quarter's achievement of 7.07 percent (yoy), in line with restrictions on mobility to overcome the COVID-19 delta variant.

Economic growth is expected to accelerate further in 2022, also driven by increased mobility in line with accelerated vaccination, the opening of wider economic sectors, and continued policy stimulus, as reported by Antara.

Reporter : turkhan
Editor : turkhan