ECONOMIC REVIEW

passing the critical phase of the Delta wave, the fourth quarter growth picked up again to 5.02% (YoY).

INFLATION

Consumer Price Index (CPI) inflation in 2021 remained low and below the target range of 3.0±1%. CPI inflation in 2021 was 1.87% (YoY), an increase compared 1.68% (YoY) in 2020. The low inflation in 2021 was influenced by weak domestic demand as a result of the COVID-19 pandemic, adequate supplies, and policy synergy between Bank Indonesia and the Government at the central and regional levels to maintain price stability. (Source: BI Press Release No.24/2/DKom, 3 January 2022). Amid concerns over high global inflation, low domestic inflation indicates that the Government’s measures and policies have been effective.

INVESTMENTS

Investments in 2021 amounted to Rp901 trillion, 104.8% of the Medium Term Development Plan (RPJMN) target of Rp858.5 trillion, and 100.1% of the target of Rp900 trillion set by President Joko Widodo. This investment was felt by 1.2 million workers from January to December 2021.

Investments in 2021 consisted of Rp447 trillion in domestic investments (PMDN), or 49.6% of the total investments, and Foreign Direct Investment (FDI) of Rp454 trillion, equal to 50.4% of the total investments. If viewed by region, the investments in Java of Rp432.8 trillion accounted for 48.0% of the total investments, with outside Java at Rp468.2 trillion accounting for 52.0% of the total investments. If you look at investment realization trend in Java and Outside Java from 2019 to 2021, it shows that the Government has continued to increase the portion of investment outside Java to encourage equitable distribution of national economic growth.