Teguh Dartanto in the Dialogue on Economic Growth in the Second Quarter of 2021
JAKARTA, MEDCOM.ID – (6/8/2021) Indonesia recorded positive economic growth in the second quarter of 2021. The Central Statistics Agency (BPS) noted that Indonesia’s economic growth reached 7.07 percent. This achievement is the highest since the fourth quarter of 2004.
This growth shows that Indonesia has managed to get out of recession. This growth ended the consecutive economic contractions from the second quarter of last year to the first quarter of this year.
Despite achieving a positive note, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia admitted that he did not want to be too carried away by this situation. This is still related to the pandemic conditions.
“In my opinion, the 7.07 percent economic growth should be appreciated. However, don’t be complacent.” Bahlil said, in a virtual dialogue on Economic Growth in Quarter II 2021, Friday, August 6, 2021.
The economic growth that reached seven percent was due to the absence of a policy to impose restrictions on community activities (PPKM) in the April to June period. The PPKM policy came into effect around June (late) and July.
“Therefore, conditions in the third quarter of 2021 will not be as good as the second quarter of 2021.” Bahlil stated.
The same note was also conveyed by Senior Economist and Politician, Faisal Basri. The economy that rose to seven percent in the second quarter of 2021 was due to the easing of large-scale social restrictions (PSBB) by the government. This easing pushed almost all sectors to start to rise.
In his observations, the highest speed of economic growth occurred in Java, around 14.6 percent. However, there is a high price to pay due to the easing of the PSBB in the second quarter of 2021, Covid-19 cases have skyrocketed.
“Economic growth is relatively good due to the relaxation of the PSBB, so that COVID-19 is rampant again. So it has to be paid in the third quarter of 2021 growth (possibly) going down again,” said Faisal.
“So, we just realized, too little too late. This shows that the economy cannot rise if the pandemic cannot be controlled.” he said.
Meanwhile, the Acting Dean of the Faculty of Economics and Business, University of Indonesia, Teguh Dartanto, appreciated the economic growth that occurred in the second quarter of 2021, especially from investment receipts, which grew significantly.
“Compared to other countries, we may still lag behind, but from within we are quite optimistic, especially if there is long-term investment growth,” he explained.
According to him, the government must be able to handle health issues appropriately so that the economic recovery can continue in the third quarter of 2021. This optimism must really be maintained. He said, “First, health is the commander, later others will follow. This means that the government needs to increase 3T (testing, tracing, and treatment), speed up vaccinations—especially for the informal sector—and tighten health protocols.”
Second, an agile and capable leadership is needed during this pandemic crisis. Teguh sees that many ministries have not fulfilled their leadership roles. Many of them did not dare to take the risk.
Third, the sincerity of all parties in building the nation for the future.
“Finally, consistency in maintaining optimism in the community. We must focus that health is the main key to economic recovery.” Teguh concluded.
Trade Partner Countries and Export-Import Growth
Bahlil explained that the economic growth of 7.07 percent in the second quarter of 2021 was caused by several factors. First, the economies of trading partners such as the United States (US), the European Union, China, and South Korea also experienced growth.
In addition, exports and imports also recorded positive growth. About 50 percent and 45 percent. This shows that the economy has started to show signs of activity in the destination countries as well as domestically.
“Although not yet optimal, but it has started to happen.” said Bahlil.
Economic growth was also supported by the consumption sector, which grew by more than five percent. Then, investment also grew by almost eight percent.
“The agricultural sector is also growing, although not optimally. The range is 0.3 to 0.5 percent.” he said.
Basically, the economic growth of 7.07 percent must be viewed objectively. This is acceptable considering that economic growth was minus five percent in the second quarter of 2020.
“Almost all countries that are basically low (economic growth in the second quarter of 2020) are now growing high. For example, Singapore. Despite the pandemic, there are prospects for improvement.” he said.
Source: https://www.medcom.id/economy/keuangan/eN43GVoK-menteri-investasi-no-ingin-terlena-dengan-percepatan-economy-7
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