Indonesia's Economy to Remain Robust

KOMPAS/HERU SRI KUMORO

President Joko Widodo accompanied by Bank Indonesia Governor Perry Warjiyo (left) and Coordinating Minister for the Economy Airlangga Hartarto answered journalists' questions after attending the 2022 Bank Indonesia Annual Meeting in Jakarta, Wednesday (30/11/2022).

JAKARTA, KOMPAS – In the midst of the global economic slowdown, Bank Indonesia (BI) has projected that the Indonesian economy will continue to grow in 2023 and 2024, supported by consumption, investment, and exports. The nation’s monetary authority has also ensured that inflation will be controlled.

The national monetary overview was presented during the 2022 BI annual meeting in Jakarta on Wednesday (30/11/2022), themed "Synergy and Innovation Strengthens Resilience and Awakening Towards an Advanced Indonesia".

In his speech, President Joko “Jokowi” Widodo encouraged his staff to remain optimistic in the face of the uncertain global economic situation next year, while urging precautionary measures in formulating policies.

"The fiscal and monetary [authorities] must always communicate and cooperate so the policies truly benefit the people and the state," the President said.

Growth is supported by consumption, increased investment thanks to [accelerated] downstream infrastructure for foreign investment, tourism and other [sectors].

BI Governor Perry Warjiyo said Indonesia's growth was projected to remain strong in a range of 4.5-5.3 percent in 2023 and to increase to 4.7-5.5 percent in 2024.

"Growth is supported by consumption, increased investment thanks to [accelerated] downstream infrastructure for foreign investment, tourism and other [sectors]," he said.

Perry said inflation would hover around 3 percent in 2023 and 2.5 percent in 2024 as targeted, plus or minus 1 percent.

Teuku Riefky, a researcher specializing in macroeconomics and financial markets at the Institute for Economic and Social Research of the University of Indonesia School of Economics and Business, said the growth forecast was realistic and in line with the projections of several world organizations.

This article was translated by Musthofid.