Indonesia's Economy Grows by 3.69% In 2021, Fiscal Stimulus Gives Contribution

JAKARTA. Statistics Indonesia (BPS) recorded the Indonesian economy in 2021 grew by 3.61% year on year (yoy).

This growth was driven by improving economic conditions in the fourth quarter of 2021, with a growth of 5.02%.

Head of BPS Margo Yuwono said that there were three factors driving the growth. Among them, first, the decline in the number of Covid-19 cases triggered an increase in community mobility.

While the second factor, the trend of global economic growth was also improving. Third, is the effect of providing fiscal stimulus to the community.

This growth trend is expected to continue in 2022 if the government is able to control the daily cases of Covid-19.

Based on Field of Business

Meanwhile, when viewed from the business field, economic growth in 2021 was driven by the activities of the processing industry, agriculture, trade, construction and trade.

The processing industry throughout 2021 was able to grow 3.39% driven by the production of cars, motorcycles and cement. All three items grew by 62.56%, 34.41% and 7.04% respectively.

Meanwhile, the agricultural sector recorded a growth of 1.84% which was driven by growth in the production of rice, horticulture such as bananas, oranges and pineapples.

For the trade sector, throughout 2021 it grew 4.65% driven by sales of cars, motorcycles and cement.

Then the construction sector in 2021 was recorded a growth of 2.81% and mining was recorded a growth of 4%.

Growth Based on Expenditure

When viewed based on expenditure, economic growth in 2021 was driven by household consumption and investment or Gross Domestic Fixed Capital Formation (PMTB). The two components grew by 2.02% and 3.8% respectively.

The growth in household consumption occurred due to retail sales of food, beverages, tobacco and vehicle fuel. Sales of cars and motorcycles, which grew by 69.67% and 38.07%, also contributed.

Then the growth in household consumption was also driven by electronic money transactions, debit cards and credit cards which grew by 11.77%.

Meanwhile, investment growth in 2021 was influenced by several cement sales which grew by 4.33%, increased production and the value of machine imports as well as the increased realization of government capital expenditures.

Then for several other components of economic growth, such as consumption of The Non-Profit Institutions Serving Households (LNPRT), government consumption, exports and imports grew by 1.59%, 4.17%, 24.04% and 23.31%, respectively.