Intellasia East Asia News – Economic recovery hinges on continued stringent COVID-19 handling

Coordinating minister for Economic Affairs Airlangga Hartarto emphasized that Indonesia’s economic recovery necessitated strict COVID-19 handling measures to be continued in order to avoid a third wave during this pandemic.

“We targeted 80 percent of our population to be vaccinated by the end of 2021 and the second dose can be completed in the first quarter of next year. Economic recovery will continue in 2022, especially for the health and social protection sectors,” Hartarto noted in an official statement received here, Thursday.

The minister also stated that the maintenance of economic growth and the control of the COVID-19 pandemic were testament of the government’s work in policies and programmes.

In the last two years, the government had managed to handle the economic contraction in 2020, recorded at only minus 2.07 percent (yoy), and place Indonesia in the 4th ranking among G20 countries.

Entering 2021, the strengthening of pandemic control has also succeeded in encouraging the Indonesian economy to grow by 7.07 percent (yoy) in the second quarter of 2021, thereby turning out to be the highest growth clocked in the last 16 years.

“Government’s consumption continues to play an important role in boosting our economic growth during the pandemic, including in Quarter II-2021. As a result, this effort can encourage an increase in household consumption and investment,” Hartarto remarked.

In addition, the recovery that occurred in various key sectors, such as manufacturing, trade, construction, and transportation and warehousing, reflected a revival in economic activities.

The government also made efforts to control inflation at the level of 1.68 percent (yoy) in 2020. Until September 2021, inflation was still maintained low and stable at the level of 1.60 percent (yoy).

Meanwhile, in terms of investment, the number of Domestic Investment (PMDN) and Foreign Investment (PMA) had also increased.

“PMDN and PMA in the first semester of 2021 could increase by 3.5 percent and 16.8 percent, respectively. This is certainly a result of the economic transformation through the Job Creation Law,” Hartarto emphasized.

The minister later explained that poverty and unemployment, which increased due to COVID-19, had also been reduced successfully. The poverty rate decreased, from 10.19 percent in September 2020 to 10.14 percent in March 2021, while the unemployment rate fell, from 9.77 million people, or 7.07 percent, in August 2020 to 8.75 million people, or 6.26 percent, in February 2021.

Improvements in the economic sector continued to be accompanied by positive developments in the health sector. Efforts to strengthen the upstream to downstream side succeeded in suppressing the rate of COVID-19 transmission by lowering the number of active cases in Indonesia to 16,697 as of October 19, 2021.

At the same time, the recovery rate of COVID-19 patients in Indonesia had reached 96.2 percent, higher than the global cure rate of 90.6 percent. Meanwhile, Indonesia’s positivity rate was below 0.5 percent, with a reproduction rate under one percent.

In addition, as of October 19, 2021, the number of vaccination doses had reached 174 million, thereby bringing Indonesia to the 5th position in the world.


Category: Indonesia

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