Indonesia's economy to grow by 3.7% in 2021, 5.2% in 2022: World Bank

The World Bank has estimated that Indonesia's economy would grow by 3.7 per cent in 2021 and by 5.2 per cent in 2022, if there are no other severe waves of the Covid-19 pandemic.

The World Bank has estimated that Indonesia's economy would grow by 3.7 per cent in 2021 and by 5.2 per cent in 2022, if there would be no other severe waves of the Coronavirus (Covid-19) pandemic and the country's vaccination rate continues to be high.

The World Bank sees Indonesia's economy continuing to recover with various sources of growth, the global lender's leading economist for Indonesia and Timor Leste, Habib Rab, said at a virtual launching of a report on Jakarta's economic prospect.

However, inflation was expected to increase in the next few months and may reach 2.2 per cent in 2022, he said, adding that Indonesia can be different from the global trend in which inflation would soar to a high level.

With this positive outlook, there is still a lot of uncertainty and risks of the long-term impact of Covid-19 for Indonesia, such as an increase in unemployment, a decrease in investment, and a decline in potential growth, he added.