Economic improvement in Q3 2022 despite fuel price hike: Minister


JAKARTA, INDONESIANPOST.COM – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan was confident that the economy in the third quarter (Q3) of 2022 could grow even higher despite the surge in fuel prices.

This conjecture was based on the trend of Indonesia’s economic growth, recorded at above five percent YoY since the fourth quarter of 2021.

“I think we all know that in the last quarter, we still grew 5.44 percent. It is beyond our expectations. We also predict that despite an increase in the price of oil, and fuel, we can still see that the next quarter will be better than this 5.44 (percent),” Pandjaitan stated at the 32nd Indonesian Employer Association’s (Apindo’s) National Working Meeting and Consultation conducted online here on Tuesday.

The minister said the surmise was also based on the continued increase in public activities, as people ventured outdoors more often coupled with the increasing frequency of public spending.

The minister remarked that despite being in the midst of a global economic turmoil, the Indonesian economy was still one of the best. This view was also echoed by several groups overseas.

In addition to sound economic growth, he commended the performance of investment that was able to grow high, reaching 35.5 percent in the Q2 of 2022.

Similarly, the high export performance contributed to a surplus in the trade balance for 27 consecutive months.

“(Indonesia)’s export performance is one of the highest in the world. We actually never expected this,” he added.

According to Pandjaitan, export performance, which grew to 32 percent YoY in July 2022, was supported by the high commodity prices, downstream that is starting to show results, efficiency with digitalization, and village funds.

“I think the village fund is because the money circulates around 70 thousand villages, and it makes economic activities in the countryside also run,” he stated.

Minister Pandjaitan said Indonesia’s sound economic performance was the result of teamwork that involved businessmen.


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