Governor of Bank Indonesia Perry Warjiyo along with International Monetary Fund Managing Director Kristalina Georgiva, President of the European Central Bank, Christine Lagard, and Minister of Finance Sri Bank Indonesia Governor Perry Warjiyo sees the economic growth will rises to 6.6 - 7.1 percent of gross domestic products (GDP) in 2021, in line with global economic recovery - Photo by BI Office

JAKARTA (TheInsiderStories) – Bank Indonesia Governor Perry Warjiyo sees the economic growth will rises to 6.6 – 7.1 percent of gross domestic products (GDP) in 2021, in line with global economic recovery. This year, he estimates Indonesia’ growth ended at 2.3 percent of the GDP.

More specifically, he explained, in the first quarter (1Q) of 2020 the economic growth was at 4.3 percent. Then, in 2Q will decrease sharply to 0.4 percent and will start increasing at 3Q at the level of 1.2 percent, and in 4Q around 3.1 percent.

“2021′ growth will range from 6.6 to 7.1 percent assuming a fiscal deficit of 3-4 percent. The reason is that the global economic recovery will encourage exports and caused the impact of government and Bank Indonesia policies,” the governor said.

Next year, he also rated, the Rupiah to move in the range of 14,900 – 15,300 a US Dollar and inflation in the range of 3 plus minus 1 percent.

Earlier, finance minister, Sri Mulyani Indrawati the economic growth could rebound in 2021 between 4.5 to 5.5 percent of GDP after the COVID-19 pandemic. This year, the country has sliced more than half of the growth targets from 5.01 percent to 2.3 percent of the GDP.

“We estimate economic growth of between 4.5 and 5.5 percent with budget deficit around 3-4 percent of the GDP,” she told reporters on April 14.

On March 31, the head of state has widened the 2020 State Budget deficit from 2.5 percent to 5.07 of gross domestic products (GDP) to curb the country’ economy from the impact of COVID-19. To that, he has signed lieu of laws of the state budget and will immediately send to parliament.

“I just signed the regulation in lieu on it and will implement the relaxing for three years period until 2022. Immediately we will be submitted the revision of (2020 State Budget) to the parliament,” said Widodo.

He elaborated, to curb the economy from the spread of COVID-19, the government adds the spending worth of Rp405.1 trillion (US$25.80 billion). In details, Rp75 trillion will distributes for health spending, like purchase of personal protective equipment, test kits, referral hospitals, incentives for doctors, other medical workers, ventilators and death insurances.

Then Rp110 trillion for social protection like poverty alleviation program for 10 million beneficiaries, cards groceries 20 million families, pre-work cards for 2.6 million recipients, exemption from electricity costs for three months period, basic food and logistical support.

In addition, Rp70.1 trillion for tax and incentives. While, Rp150 trillion for fan economic recovery program, including credit restructuring, guarantees and financing of the business world for six months.

For the non-fiscal sector in ensuring the availability of goods, including industrial raw materials, the government applies a simplified export ban, simplification of a limited import ban, the acceleration of services in the import-export process through the national logistics ecosystem.

In total the government spending in 2020 will rises form intial plans Rp2,540.4 trillion to Rp2,945.5 trillion. While the revenues its expecting lowers then initial target Rp2,233.2 trillion.

Written by Staff Editor, Email: theinsiderstories@gmail.com