Indonesian economy to grow 4.9–5.2% in 2023, BRIN predicts

Jakarta (ANTARA) – Head of the Research Center for Macroeconomics and Finance of the National Research and Innovation Agency (BRIN), Zamroni Salim, has projected that Indonesia’s economy will grow well in the range of 4.9–5.2 percent in 2023.

“In facing the uncertain global economy in 2023, BRIN predicts Indonesia’s economy can still grow well,” he said at the “Symposium of Economic Practitioners and Researchers” held by BRIN and the Indonesian Researchers Association (PPI) here on Thursday.

According to Salim, the projection for Indonesia’s economic growth in 2023 is based on optimism that the country’s economic performance will start to improve in the fourth quarter of 2022, with growth reaching 5.4 percent.

To make the most of the momentum, the government, Bank Indonesia, the private sector, and the community need to anticipate the problem of inflation, especially in food and energy, exchange rates, and the active trade sector, supported by investment and production in the agricultural and manufacturing industries.

“We also need to optimize the reallocation of some of the energy subsidy funds. This is done to improve the ability to reduce the worst possibility of a recession that threatens in 2023, especially for people below the poverty line,” he said.

He expressed optimism that, with those steps, Indonesia’s economic growth can be expedited, especially after the easing of restrictions on public activities due to the improvement in pandemic handling.

Meanwhile, the head of BRIN, Laksana Tri Handoko, said that Indonesia is one of the countries that have shown resilience in facing global crises.

In the past three years, the world has faced several crises caused by the pandemic and the geopolitical tension between Russia and Ukraine, he noted.

Handoko further said that Indonesia’s economic resilience can be seen from its economic growth. In 2020, Indonesia’s economic growth touched minus 2.07 percent. It then recovered to 3.69 percent in 2021, and in the third quarter of 2022, the country’s economic growth stood at 5.7 percent.