A Number of Indicators to Pick up Indonesia's Economy to Accelerate the Recovery

Data released by the Indonesian Central Bureau of Statistics showed that Indonesia's GDP in the first quarter increased by 5.01% year-on-year, higher than market expectations, and maintained growth for four consecutive quarters. Analysts believe that a number of indicators have picked up, showing that the Indonesian government's measures to open up the labor market, promote employment and improve infrastructure construction have been effective.

Compared with the same period last year, the consumption of residents, who accounted for more than half of Indonesia's GDP, increased by 4.34% in the first quarter, higher than 3.55% in the previous quarter; fixed asset investment increased by 4.09%; and exports increased by 16.22%.

Indonesia's export trade has achieved rapid growth since last year. According to statistics, the most exported commodities in Indonesia last year were coal, stainless steel and other products. In addition, exports of electronics, footwear and clothing, furniture, plastics and leather goods have also grown rapidly. The Badingban Deepwater Port, which is mainly used for automobile exports, was completed and opened in early 2021, boosting the export of automobiles and parts.

In addition, Indicators such as Indonesia's consumer confidence index, total retail sales, motor vehicle sales, cement and electricity consumption index have all achieved growth, and the economic recovery momentum is obvious.

In order to revive the economy, Indonesia supports banks to lend to enterprises, and dynamically adjusts and optimizes to alleviate the financial pressure of market players. At the same time, preferential income tax rates will be implemented and the period of tax incentives will be extended to reduce the tax burden of enterprises. Bank Indonesia Governor Vajjo said that the Indonesian government continues to promote prudent fiscal and monetary policies to create a stable and healthy macroeconomic environment.

Here is Astrid, manager of marketing of Guangxi Fuyu Import  & Export Trading Company Co., LTD.

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