Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) just finished holding a Cabinet Plenary Meeting today, Tuesday (6/12/2022). Various outlooks and targets for the Indonesian economy for 2023 were also agreed.
Economy Coordinating Minister Airlangga Hartarto explained that Indonesia’s current economic growth is considered to be quite good.
Indonesia’s economic growth up to the end of 2022 is estimated at 5.2% (yoy/yoy) and is expected to reach 5.3% (yoy) next year.
“In 2023 the forecast is 5.3% as stipulated in the state budget,” Airlangga explained in its press release regarding the Cabinet Plenary Meeting at the President’s Office on Tuesday (6/11/2022).
The government’s economic growth target for 2023 is higher than the projections of various international institutions such as OECD, IMF, ADB and World Bank which project Indonesia’s economic growth in 2023 at between 4.7% and 5.1% .
“The upside risk of managing Covid and accelerating vaccination are relatively good, the function of the state budget is that of a shock absorber, then the high prices of raw materials and the G20 presidency have made our credibility in the market good international,” Airlangga said again.
External factors will also continue to be monitored by the government, as they may pose a risk to the national economy.
External factors that the government will continue to monitor include supply chain availability, geopolitical environment, global inflation, inflation scare, and extreme weather conditions.
In terms of the inflation rate in the country, Airlangga also believes that the current inflation rate can be maintained, the government and related authorities have also managed to reduce the inflation rate and should be maintained in the 5% range until the end of this year.
“After 5.9% (September), 5.72% (October) and 5.42% (November), inflation is estimated to be 5.34% by the end of the year at 5.5%,” Airlangga explained.
Inflation in Indonesia, which is still above 5%, is considered by the government to be better than inflation in many countries.
For example, in Russia, where inflation has reached 12%, India 6.77%, the United States 7.7%, the European Union 10%, the United Kingdom 11 .1% and Japan 9.7%.
Central bank policy guidance in many developed countries is also one of the government’s concerns in making policy guidance next year.
“Due to political tension, inflation, global interest rates, stagflation is still visible,” Airlangga explained.
“We see our (inflation) projections from various international banks and institutions, we are optimistic in 2022, as well as 2023 with a range from 4.7% to 5.25%, from various scenarios for global institutions,” he said. Airlangga.
Next article
The United States and China are moving away, Indonesia’s economy wants to soar
(header/header)
