JAKARTA: The government projects sustained economic resilience in the first quarter (1Q) on expanded growth from 5.5% to 5.7% due to increased spending over the Hari Raya Aidilfitri holiday, despite mounting global pressures.
Finance Minister Purbaya Yudhi Sadewa said on Saturday that the economy could grow this year between 5.6% and 5.7%, supported by strong household consumption during the holiday season and broader resilience of domestic demand amid external uncertainties.
Purbaya also noted expectations that the growth momentum would persist beyond Hari Raya, underpinned by continued consumer spending and private sector activity, which remain the economic backbone.
Though global conditions could weaken if geopolitical tensions intensified, he said, external demand is still strong for now.
To safeguard spending power, the government plans to shield consumers from global oil price volatility by maintaining stable domestic energy prices, particularly for subsidised fuel.
“The global impact has not really been felt here because it is being absorbed by the government.
“We are making sure that people can continue normal activities under the current conditions,” Purbaya was quoted by Antara as saying.
Coordinating Economy Minister Airlangga Hartarto echoed Purbaya’s optimism, saying that the 1Q growth target of 5.5% was achievable, driven by higher seasonal consumption during Ramadan and Hari Raya.
However, he also pointed to potentially higher inflation compared to the same period last year, partly due to the absence of the government’s electricity tariff discounts that had dampened price pressures.
Even so, Airlangga noted that the government was confident spending power and holiday spending would sustain the growth momentum.
He added that a stimulus package had been rolled out with an aim to boost consumption in 1Q, particularly during the annual mudik (exodus) travel period for Hari Raya.
The stimulus includes discounted transportation fares of 30% for trains, 30% for sea transportation, as well as 100% for ferries, and 17% to 18% for aeroplanes in a bid to encourage travel and spending over the long holiday. — The Jakarta Post/ANN
