JAKARTA, Nov 24 — Indonesia’s economic growth is forecast to reach 4.7 to 5.5 per cent in 2022, driven by the continued recovery of the global economy which has boosted export performance.
The projection was also supported by increased domestic demand, investment, vaccinations, economic sector opening and stimulus policies, Bank Indonesia (BI) governor Perry Warjiyo said at the annual BI hybrid meeting attended by President Joko Widodo (Jokowi) here today.
According to the central bank, growth in 2021 is now expected at 3.2 to 4.0 per cent, no longer the previously projected 3.5 to 4.3 per cent.
The largest economy in Asean recorded a 3.51 per cent growth in the third quarter of 2021, but still at a slower pace than the previous quarter, it added.
In his speech, Jokowi called for digital empowerment of the economy to be enhanced and green economy investments to be realised as soon as possible to reduce carbon emissions.
Indonesia, which is hosting the Group of 20 (G20) summit in Bali next year, will build a 30,000 hectare Green Industrial Park in North Kalimantan next month, he said.
To attract investment and develop the downstream sector, Jokowi did not rule out the possibility of halting exports of bauxite next year, copper ore in 2023 and tin ore in 2024.
Following the decision to ban the export of nickel effective January 1, 2020, the European Union has filed a trade dispute complaint against Indonesia to the World Trade Organisation.
Commenting on the matter, Jokowi said his government “did not want to disrupt production activities”, adding that investors should come to Indonesia, bringing technology if they want nickel.
Nickel is a key component in lithium-ion batteries, used in electric vehicles.
— Bernama
