Indonesia's Economy has Returned to pre-COVID Level: Minister of Finance

TheIndonesia.co - Minister of Finance Sri Mulyani Indrawati stated that the Indonesian economy has returned to the pre-COVID level based on the aspects of the gross domestic product (GDP) and state budget deficit.

"The Indonesian economy has reached a pre-COVID level in terms of the GDP, both in 2021 and 2022. Meanwhile, in terms of the state budget deficit, it is relatively moderate," Mulyani noted in a press statement after the plenary cabinet meeting on the Financial Note and the 2023 Draft State Budget led by President Joko Widodo (Jokowi) here Monday, August 8, 2022.

The latest data from the Statistics Indonesia (BPS) showed that the Indonesian economy based on GDP in the second quarter of 2022 reached Rp4,919.9 trillion, or grew by 5.44 percent, as compared to the same period last year. Meanwhile, the BPS noted that Indonesia's economy in 2021 based on the GDP reached Rp16,970.8 trillion, or grew by 3.69 percent, with a GDP per capita of Rp62.2 million, or US$4,349.5.

 Minister Mulyani said that the 5.44-percent economic growth in the second quarter of 2022 was an impressive achievement that surpassed the government's forecast.

"As seen yesterday, economic growth in the second quarter reached 5.44 percent. This is an impressively high growth because last year, in the second quarter, the growth was quite high at 7.1 percent," she stated.

 With a high benchmark from the previous year, the government forecast Indonesia's economic growth in the second quarter to be at 5.2 percent, though the result exceeded expectations.

 The government will strive to maintain the economy at a good level for the second semester of 2022, she noted. "The economy in 2022 is already in a good position and should be maintained in the second semester," Mulyani stated.

To support this effort, domestic factors should be pursued, considering the global environment is still replete with uncertainty.

Mulyani drew attention to the president's direction that all ministries and government agencies could realize government spending in 2022 by focusing on buying products with high local content. "This will be able to support stronger economic recovery in the third and fourth quarters at a time when the global environment is experiencing a turbulent trend," she said.