Jakarta, The Indonesia Post – Governor of Bank Indonesia (BI) Perry Warjiyo estimates that Indonesia’s economic growth in 2023 will tend to grow higher or have an upward bias in the range of 4.5-5.3 percent.
“If the upward bias could be closer to 4.9, it could be higher than 5 percent, but is it higher than 5.3, it is possible that Bank Indonesia’s view may not yet be,” Perry said in the Announcement of the Results of the February 2023 BI Board of Governors Meeting (RDG) monitored in the network in Jakarta, Thursday.
Indonesia’s economic growth is estimated to remain strong and has the potential to be higher driven by increased exports and improving domestic demand, especially private consumption.
Export performance has the potential to be higher than previously forecast driven by the positive influence of China’s economic recovery. High growth is forecasted for household consumption due to increased confidence in economic actors and an increase in people’s mobility following the repeal of the Imposition of Restrictions on Community Activities (PPKM) policy.
Improved investment was driven by improved business prospects, increased inflows of Foreign Investment (PMA), and the ongoing completion of the National Strategic Project (PSN).
However, according to Perry, Indonesia’s economic growth of higher than 5.3 could be possible if exports to China and private consumption increase significantly.
“Our estimate of our economic growth in Indonesia is biased upwards to around 5.1 percent. This is much higher than other countries,” he said.
Indonesia’s economic growth in the fourth quarter of 2022 was recorded at 5.01 percent compared to the same period the previous year (year on year/yoy) so that overall in 2022 it was recorded at 5.31 percent (yoy), a far increase from the previous year’s achievement of 3.70 percent (yoy).
Spatially, strong national economic growth in 2022 will occur in all regions, with the highest growth recorded in the Sulawesi-Maluku-Papua region, followed by Java, Bali-Nusa Tenggara, Kalimantan and Sumatra. (mhn/bbs)
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