Jakarta: Minister of State-Owned Enterprises (SOEs) Erick Thohir is optimistic that Indonesian economy can continue its recovery and grow by around 3-5 percent this year.
"Last year, our economy contracted by 2.1 percent. God willing, our economic growth can reach 3-5 percent this year," said the minister during The Indonesia 2021 Summit: The Future is Now, Leading in The Era of Disruptions here on Tuesday.
To tackle the spread of coronavirus in the country, the minister said, the Indonesian government will continue to promote implementation of health protocols and expedite its national covid-19 vaccination program.
"In January, the vaccination program focused on health workers and doctors. Form February until Mei, we will vaccinate senior citizens and public sector workers," Erick explained.
According to Bank Indonesia, The vaccination rollout and national policy synergy are expected to drive domestic economic recovery momentum moving forward.
Indonesia's economy contracted 2.19 percent in the fourth quarter of 2020 as mobility restrictions to break the domestic chain of Covid-19 transmission weighed heavily on private consumption and building investment.
Although lower than previously projected, the national economy experienced a shallower contraction in the fourth quarter of 2020 compared with -3.49 percent in the third quarter of 2020.
For the year, therefore, the economy shrank 2.07 percent in 2020.
Moving forward, domestic economic improvements will endure in line with the global economic recovery and expedited national vaccination program by the Government.
Recent export gains affecting several commodities have been maintained, including crude palm oil (CPO), coal, iron and steel, along with several manufacturing products, such as organic chemicals, motor vehicles and footwear, which has boosted sectoral performance.
Spatially, stronger export performance has also been recorded in several regions, specifically Sulawesi, Maluku, Papua, Java and Sumatra.
The central bank projects national economic growth in 2021 in the 4.3-5.3 percent range, downgraded from 4.8-5.8 percent in line with the pace of economic growth realised in the fourth quarter of 2020.