The World Bank predicts Indonesia Economic growth at 3.7% this year and will jump at 5.2% in 2022. This estimation is based on the assumption that there will be no spike of COVID-19 cases in 2021. It is expected that the vaccination rate will reach 70% of the total population as well as the monetary and fiscal policies are still accommodative. Global trade and commodity prices are also moderate. “Delta Wave has taught us that continuing to improve vaccine tracing, testing and tracing, also because ensuring adequate critical care capacity is one of the best ways to prepare for Omicron variant and other COVID-19 variants," said World Bank Director for Indonesia and Timor Leste. One Kahkonen in his written statement. "Beyond a strong public health response, it is also important for Indonesia to sustain recent structural reform efforts. This should accelerate growth even as authorities begin to gradually reduce macroeconomic support." However, the spread of new variants of COVID-19 are a threat to be watched out where it wounds global financial in several countries.
The World Bank recommends that the government should focus on economic recovery policies by increasing investment, the quality of human resources (HR) and productivity. Several regulations have been implemented by the government, such as the Job Creation Law and the Tax Regulations Harmonization Law (HPP). This is expected to be able to build an economy that is more competitive, resilient and leads to a green economy.
