Positive Outlook for Indonesia Economy Despite Social Restrictions
The Government is optimistic about Indonesia’s economic growth for 2021 despite the social restrictions in place.
The Ministry of Home Affairs remains confident that the country can still achieve the 5% economic growth. This optimism remains intact despite the large-scale social restrictions (PSBB) that are imposed in the country from 11 January to 23 January. These restrictions impact Jakarta and 23 other districts and cities within six provinces in the country.
Indicators of Positive Economic Growth
The economic growth of the country contracted by 5.32% in the second quarter of 2020. In the third quarter, it contracted 3.49%. The Jakarta Composite Index (IHSG) rose 6,128 points. A lot of the improvement had to do with the monetary stimulus and the Government’s state budget expenditure.
The price of certain commodities has also been at their highest level yet. These commodities include crude palm oil, nickel, and coal. Another indicator of positive economic growth is the 51.3-point increase in the Manufacturing Purchasing Managers’ Index (PMI).
The Government is optimistic that its planned vaccination in mid-January will help the public to regain their confidence. The public’s health remains the Government’s first focus.
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Indonesia has made all the right moves to help the country recover. All the signs are there that Indonesia’s economic growth is on track to return to normal. Now is the time to consider your company incorporation in Indonesia with the help of the incorporation experts at 3E Accounting.
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