Economic growth will reach 4.6% in 2022: unemployment insurance rector

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Growth of 4.1 to 4.6% is still quite achievable in 2022

Jakarta (ANTARA) – The rector of the University of Indonesia (UI) and economist Ari Kuncoro predict that Indonesia’s economic growth will be between 4.1 and 4.6 percent year-on-year in 2022.

“Growth of 4.1-4.6% is still very much achievable in 2022. The most important aspect is that we don’t need to be too fast (to draw conclusions) because inflation still looms over us, and inflation will reduce people’s purchasing power,” Kuncoro noted during a public hearing with the House Budget Committee here on Thursday.

The transmission of COVID-19 caused by the Omicron variant increases the level of uncertainty. However, the spread of this variant has, so far, been more controlled than the Delta variant, so the situation should have little impact on the economy.

“Efforts to control the COVID-19 pandemic remain important, as controlling COVID-19 is currently proving to have a positive impact on the economy. Therefore, it is no longer a compromise,” noted Mr. Kuncoro.

It also supports the government’s efforts to control COVID-19 while allowing activities to open through the phasing in of Community Activity Restrictions (PPKM).

With economic growth of 3.51% year-on-year in the third quarter of 2021, this growth should start to return to normal or pre-pandemic levels.

Kuncoro asserted that inflation should be controlled simultaneously, so that it does not increase when fiscal management policies are restored, for example, the state budget deficit is limited to no more than three percent of product gross domestic (GDP).

“We can learn that controlling inflation is crucial. It is also linked to controlling health. So when the budget deficit comes back to three percent of GDP, the situation is actually still under control if we take it. looks with the current growth model,” Kuncoro added.

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