Indonesia: BI optimistic of 4.5–5.3% economic growth in 2023
Jakarta (ANTARA) – Governor of Bank Indonesia (BI) Perry Warjiyo on Wednesday expressed optimism that Indonesia’s economy will grow around 4.5–5.3 percent in 2023.
“The growth will be quite good: 4.5 percent to 5.3 percent in 2023,” he said at the Bank Indonesia Annual Meeting 2022 here.
This growth would be supported by several factors such as exports, consumption, and investment, which will increase, he added.
Downstreaming, infrastructure development, foreign investment, and tourism activities are also expected to boost growth.
During the meeting, Warjiyo predicted that inflation, which is currently still high, will decline again to a target of 3 plus/minus 1 percent next year.
He said that the interest rate policies, through front-loaded, pre-emptive, and forward-looking measures, would measurably reduce very high inflation expectations.
“(They will) even ensure core inflation to return to the target of 3 plus/minus 1 percent earlier, namely in the first semester of 2023,” he added.
He also assured that the rupiah exchange rate will be maintained and strengthened in 2023 if the global turmoil subsides.
Rupiah will be maintained on the back of Indonesia’s good economic fundamentals, high growth, low inflation, and attractive government bond yields.
The policy for stabilizing the rupiah against global pressure is also targeted to control inflation as well as stabilize the macroeconomy and financial system.
Next year, Indonesia’s external stability is also expected to remain strong with a balanced current account, a capital account surplus from foreign investment, expectations of portfolio investment re-entry, and increasing foreign exchange reserves.
The stability of the economic system will be maintained with high capital adequacy as well as liquidity that is more than adequate.
“Credit growth will reach 10–12 percent in 2023 and 2024,” Warjiyo stressed.
Lastly, digital economy and finance are predicted to grow rapidly in 2023, with e-commerce transactions reaching Rp572 trillion, electronic money transactions Rp508 trillion, and digital banking transactions crossing Rp67 thousand trillion.
“Synergy and innovation are keywords for national economic resilience and revival,” the BI governor remarked.