"In this year's state budget, our economic growth is expected to reach around five percent," said President Jokowi during the Coordination Meeting of the Trade Ministry here on Thursday.
"It is not an easy task because our economy contracted by 2.19 percent last quarter," said the President.
Indonesia's economy contracted 2.19 percent in the fourth quarter of 2020 as mobility restrictions to break the domestic chain of Covid-19 transmission weighed heavily on private consumption and building investment.
Although lower than previously projected, the national economy experienced a shallower contraction in the fourth quarter of 2020 compared with -3.49 percent in the third quarter of 2020.
For the year, therefore, the economy shrank 2.07 percent in 2020.
Bank Indonesia (BI)projects national economic growth in 2021 in the 4.3-5.3 percent range, downgraded from 4.8-5.8 percent in line with the pace of economic growth realised in the fourth quarter of 2020.