IdentikPos.com, Jakarta – Minister Suharso said China’s economy rebounded and grew very high in Q1-2021 at 18.3%, thus becoming the locomotive of global economic recovery due to China’s economic contribution of 16.3% to the global economy.
This was conveyed by the Minister when giving his remarks at the Central Development Coordination Meeting, which was also attended by the Minister of Finance, Minister of Investment, and Minister of BUMN.
Increased domestic demand and industrial recovery are the keys to China’s economic growth. On the production side, China’s economic growth was driven by an increase in manufacturing industrial output by 24.4%.
The service sector has also seen a recovery, especially the accommodation and restaurant sector which grew by 43.7%. The flow of Foreign Direct Investment to China has also grown positively since Q2 / 2020. In the first quarter of 2021, FDI entering China grew by up to 43.8% in line with the addition of 10,263 new investors.
Meanwhile, the US economy is expected to rebound in the second quarter of 2021, in line with the fiscal stimulus of USD 1.9 trillion and other counter-cyclical policies. With the American economy contributing 24.5 percent to world GDP, the US economic recovery will boost the global economic recovery process.
The minister explained that the economic recovery of China and the US had triggered the recovery of Indonesia’s exports, because China and the US were Indonesia’s main trading partners, with export shares of 21.4 and 11.9 percent.
“The growth of Indonesia’s exports to China and the US during the first quarter of 2021 reached 63 percent and 15.9 percent. The growth of Indonesia’s exports to China is due to increasing exports of coal, metal products and their processed products, as well as crude palm oil, ”said the Minister.
Meanwhile, the IMF and other international institutions predict that the acceleration of Indonesia’s economic growth will occur in 2022.
Thus, this is very much in line with the direction of the 2022 Government Work Plan which targets that 2022 is a key year for Indonesia to recover quickly and rise after Covid-19.
The target for Indonesia’s economic growth in 2022 is 5.4 – 6.0 percent.
Pewarta : Yahman Efendi
Thursday, April, 29th 2021
*Public Communications Team*
Ministry of National Development Planning/Bappenas