Economists doubt that Indonesia's economic growth target can reach 7% as stated by President Joko Widodo.
The Head of State has an ambitious target, which wants Indonesia's economic growth in the second quarter of 2021 to be above 7%.
According to economist Indef Bhima Yudistira, the economy can grow by 7% by the middle of this year. It will be difficult to do. Where he said, economic growth in 2021 will only be 2%.
"It seems that we can't yet, the target should not be overshoot. Just growing 2% throughout 2021 is already very good," said Bhima.
He said, there were several challenges, such as the unbalanced economic recovery between Jakarta, Bogor, Depok, Tangerang, Bekasi and other areas due to the prohibition of the Lebaran homecoming.
"The money in circulation is more concentrated in retail Jakarta, Bogor, Depok, Tangerang, Bekasi during the second quarter. Then there is the challenge of vaccine supply, and vaccination realization, where stage 1 is still 7% of the 181.5 million people," he said.
Another problem is the recovery in the manufacturing sector, which is still uneven. Manufacturing is not as fast as the commodity sector where prices are booming as demand rises. Manufacturing, such as textiles and apparel, is still slowing down.
On the other hand, support from the government's fiscal stimulus to the widening budget deficit, so that the absorption is not expected to be as high as last year. This is because there is a tendency for regional governments to withhold budget absorption by parking funds at regional banks.
"Later, if these obstacles can be overcome, the economy can grow high. But once again, if 7% seems too optimistic about a mediocre strategy, there must be extraordinary steps," he said.