After contractions in the previous four consecutive quarters, Indonesia’s economy registered its first growth in Q2/2021. According to Statistics Indonesia (BPS), Indonesia’s economy in Q2 grew by just over 7%. The progress comes from four sectors, namely the processing industry, warehouse transportation, retail and major trades, as well as food and beverage, and accommodation supplies. The transportation and warehousing sector experienced the highest growth, with F&B and accommodation coming in second.
Besides the four above sectors, healthcare services and the real estate sector are also showing positive signs. The improvement was supported by Indonesia’s exports and imports trading partners that saw a pick-up in their business activities. With the relaxation of pandemic restrictions and the Covid-19 pandemic relatively under control, conditions are now more conducive for greater business activity and public movement in the country.
Due to the Covid-19 pandemic, Indonesia’s economy contracted 2% in 2020, falling into its first recession since the 1997 Asian financial crisis. The Central Bank predicted 2021 GDP growth to be between 3.5% and 4.3%.
(Sources: France 24; Tempo)