Inflation, Unemployment Overshadow Economic Recovery

The Indonesian economy experienced positive growth in the first quarter of 2022. Nevertheless, the path toward economic recovery is still overshadowed by challenges: inflation and unemployment.

KOMPAS/AGUS SUSANTO

Multi-storey building in Central Jakarta, Thursday (10/2/2022). The global challenges facing Indonesia are still high in efforts to recover the economy from the impact of the Covid-19 pandemic. In addition to the pandemic factor, the increase in world oil prices and the increase in demand for a number of commodities also have the potential to increase the rate of inflation.

JAKARTA, KOMPAS - The Indonesian economy reportedly grew 5.01 percent on an annual basis in the first quarter of 2022, although it still contracted 0.96 percent compared to the fourth quarter of 2021. Household consumption, investment and exports facilitated the growth.

Statistics Indonesia (BPS) notes household consumption grew at 4.43 percent, investment at 4.09 percent and exports at 16.22 percent. Despite this, economic recovery is still overshadowed by high inflation and unemployment, which have not returned to their pre-pandemic levels.