Bank Indonesia Confident Over 5 Percent Economic Growth

TEMPO.COJakarta – Bank Indonesia Governor Perry Warjiyo, in a virtual presentation on the central bank’s transparency and accountability report, said Indonesia managed to positively survive the coronavirus pandemic over the past three years. He even claims domestic economic growth is estimated to be in the range of 4.5 percent to 5.3 percent.

“It can be between 5.1 to 5.2 percent that is thanks to not just exports, but also growing private sector consumption,” the governor said on January 30. 

According to Perry, this is a considerably good outcome when compared to the global economy which in 2022 only grew by 3 percent. Some countries have even logged numbers below that. “Due to this, we must be grateful,” he said.

For inflation after the fuel price adjustment in September 2022, it fell faster than expected. The original estimate at the end of the year was 6.5 percent but only realized at 5.51 percent. Perry considered, this a positive achievement when compared to other countries.

In terms of exchange rate stability, Rupiah reached 8.9 percent. This happened amid the strengthening of the US dollar which was almost 25 percent. “The rupiah exchange rate is a pillar of our economic and political stability.”

Meanwhile, the current account logged a surplus and grew 11.1 percent. Coupled with rapid digitization. “QRIS transactions reached Rp30 million per day, transactions in e-commerce are so fast, fintech, and banking digitization are what we are really proud of. We should be grateful,” said Perry.

The Institute for Development of Economics and Finance (Indef) has increased Indonesia’s overall economic growth projection for 2022 from 5 percent on an annual basis (year-on-year/yoy) to 5.1 percent. The revision was made after the realization of economic growth in the third quarter of 2022 which shot high, reaching 5.72 percent (yoy).

Source: https://en.tempo.co/read/1685591/bank-indonesia-confident-over-5-percent-economic-growth