BI Cuts Indonesia’s 2021 Economic Growth Projection to 4.1-5.1 Percent

JAKARTA, KOMPAS.com – Bank Indonesia (WITH A) decided to revise the national economic growth forecast for 2021 again, to a range of 4.1 to 5.1 percent.

This is the second time BI has cut its national economic growth projection. Initially, BI projected that Indonesia’s economy this year would grow in the range of 4.8 to 5.8 percent, then trimmed by 4.3 to 5.3 percent, and now it is in the range of 4.1 to 5.1 percent.

“Bank Indonesia estimates that Indonesia’s overall economic growth in 2021 will be around 4.1 percent to 5.1 percent,” said the BI Governor. Perry Warjiyo in a virtual press conference, Tuesday (20/4/2021).

Also read: IMF Downward Revision of RI’s Economic Growth, This Is Sri Mulyani’s Comment

Even so, Perry said that the Indonesian economy was now in an improving trend.

This is reflected in the continued improvement in export performance, which is supported by mainstay commodities such as palm oil, metal ores, motor vehicles and steel.

The strengthening of exports was also driven by increased demand from Indonesia’s main trading partners, namely the United States and China.

Also read: Sri Mulyani Predicts Indonesia’s Economic Growth in the First Quarter of 2021 is Still Minus

“World trade volume and commodity prices also continue to increase, thus supporting the higher export performance of developing countries, including Indonesia,” said Perry.

However, consumer expectations and retail sales are still growing on a limited basis, with concerns about the Covid-19 pandemic still remaining.

“There have been improvements such as consumer expectations and retail sales in March 2021. However, this is limited due to the limited mobility of the community amid the government’s efforts to vaccinate,” said Perry.

Also read: BI Holds Reference Interest Rates at 3.5 Percent Level

– .