Jokowi optimistic of 7 percent Indonesia economic growth in second quarter

Jakarta (ANTARA) - President Joko Widodo has said he is optimistic the Indonesian economy will grow seven percent year-on-year in the second quarter of 2021 in view of improving macro economic indicators.

"We all remain optimistic that Insya Allah (God willing), the economy will grow by about 7 percent in the second quarter after contracting 0.74 percent in the previous quarter," he said.

Indonesia’s retail sales index has climbed 12.9 percent as of June, 2021, Widodo said while addressing the eighth national congress of the Indonesian Chamber of Commerce and Industry (Kadin) in Kendari, the provincial capital of Southeast Sulawesi, on Wednesday.

Construction projects, which have continued to grow, have also pushed demand for construction materials, such as cement, which has grown 19.2 percent, he said.

The sales of commercial vehicles have also soared by up to 733 percent, he added.

"I think the increase is fantastic. Therefore, as the Kadin chief (Rosan Roslan) has earlier reported, we all remain optimistic," Widodo remarked.

Indonesia’s consumer confidence index climbed to 104.4 in May, 2021 compared to 85 in February, 2021, the head of state pointed out. This suggests that public demand for consumer goods has shown signs of recovery, he said.

The other positive indicator pertains to manufacturing activity, which has risen drastically, he added.

Based on calculations, in May, 2021, the Purchasing Managers’ Index (PMI) reached 55.3, well above the pre-COVID-19 pandemic level of 51, the President noted.

"The very high (PMI) means that there is still optimism. The same is also true with the supply side where production jumps and exports grow,” he said.

While exports have climbed 58 percent, raw material imports have increased by 79 percent with the growth of the manufacturing industry, he observed.

"The import of capital goods rose 35 percent. Those are the figures which are reported to me every morning," he said.