As of the second quarter of 2021, the domestic economic recovery has endured, primarily driven by exports, fiscal spending and nonbuilding investment.
Early indicators in June 2021, including retail sales and PMI, confirmed an ongoing economic recovery.
Notwithstanding, economic moderation is expected in the third quarter of 2021 after the Government reintroduced mobility restrictions to break the domestic chain of Delta variant transmission.
Household consumption has been severely undermined by emergency mobility restrictions despite increasing social aid program (bansos) disbursements from the Government and persistently solid export performance.
"Consequently, Bank Indonesia has revised down its national economic growth projection for 2021 to 3.5-4.3% from 4.1-5.1% previously," BI Governor Perry Warjiyo said here on Thursday.
Economic growth is predicted to regain upward momentum in the fourth quarter of 2021 as the vaccination rollout and strict compliance to health protocols allow for greater public mobility along with ongoing stimuli and improving export performance.