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Indonesia sets sights on 5.5% GDP growth, 4.85% budget deficit in 2022
President Joko "Jokowi" Widodo said the government would seek to spur economic growth to 5.5 percent next year while the budget deficit was expected to narrow to 4.85 percent of GDP.
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President Joko "Jokowi" Widodo delivers a speech before the Peoples Consultative Assembly (MPR) at Gedung Nusantara in Jakarta on Aug. 16, 2021. (BPMI Setpres/Lukas)
T
he government expects an acceleration of economic growth and a narrower budget deficit in 2022 in line with its fiscal consolidation plan.
President Joko “Jokowi” Widodo said the country’s GDP was projected to grow by between 5 and 5.5 percent next year. While lower than an earlier Finance Ministry projection of between 5.2 and 5.8 percent, that range suggests a significant improvement over growth expected for this year.
“We will try our best to achieve the upper bound of the growth target at 5.5 percent,” Jokowi said in his State of the Nation address at the House of Representatives on Monday.
“These growth rates reflect quite a strong recovery projection, supported by growth in investment and exports as a result of the structural reforms.”
The resurgence in COVID-19 cases and deaths, which was driven largely by the highly transmissible Delta variant of the coronavirus, has forced the government to lower the growth projection for this year to between 3.7 and 4.5 percent from 4.5 to 5.3 percent.
In the April-to-June period, the economy grew by 7.07 percent year-on-year (yoy), largely because of the base effect and seasonal factors, Statistics Indonesia (BPS) data show.
Read also: Indonesia GDP grows for first time since pandemic hit
