Indonesia's economy to grow by 6.6-7.1 pct next year

Source: Xinhua | 2020-05-01

Bank Indonesia has estimated that Indonesia's economic growth in 2021 will be in the range of 6.6 percent and 7.1 percent, the central bank's governor Perry Warjiyo said here Thursday.

The economic growth in 2021 would be influenced by the government's fiscal stimulus of around 3.1 to 4 percent to the gross domestic product (GDP), Warjiyo said at a virtual hearing with the House of Representatives.

In addition, the economic growth was also influenced by the progress of the credit and business restructuring program, as well as the impact of delayed monetary expansion in 2020 for economic recovery from the COVID-19.

"Increasing global economic growth can also boost Indonesian exports," Warjiyo was quoted by Indonesia's national news agency Antara as saying.

He said that the economic performance in 2021 would also be supported by encouragement of foreign and domestic investment due to the implementation of structural reforms, including the omnibus law.

Likewise, he told legislators that the economic growth next year could also be influenced by the rupiah exchange rate which was expected to strengthen at an average range between 14,900 rupiahs and 15,300 rupiahs per U.S. dollar in line with the improving global economy and declining global financial market uncertainty.

The movement of the rupiah exchange rate in 2021 is also influenced by the increase in the high investor confidence in the outlook for the Indonesian economy, and the attractive level of Indonesian investment returns, he said.

Meanwhile, the average rupiah exchange rate in 2020 is estimated to be in the range between 15,100 rupiahs and 15,500 rupiahs per U.S. dollar along with various efforts made by relevant authorities to maintain the stability of the currency from uncertainty due to the existence of the COVID-19.(1 U.S. dollar = 15023.50 Indonesian Rupiah)