Perry Warjiyo Emphasizes Synergy For Economic Resilience And Awakening

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo emphasized the importance of strengthening synergy to strengthen Indonesia's economic resilience and revival in the future facing global challenges and turmoil.

"The key to guarding the economy in the future is of course how we all nationally synergize to strengthen the resilience and economic revival this year, next year and also the next five years," Perry said as quoted by Antara, Monday, March 20.

Commission XI of the DPR RI held a fit and proper test of one BI candidate for the 2023-2028 period, namely Perry Warjiyo, who is currently the Governor of BI.

Perry was proposed by President Joko Widodo as Governor of BI for the period 2023-2028.

Perry said the global turmoil faced was the continuing conflict between Russia and Ukraine, the heating up the United States-China China trade war, high global inflation, slowing global economic growth, the strengthening US dollar, and the perception of global investors who are still negative.

BI estimates that global economic growth in 2023 will slow to 2.6 percent before strengthening in 2024 at 2.8 percent. Global inflation in 2023 is also still high, which is estimated at 5.2 percent. The Fed Funds Rate (FFR) is also estimated to be high in the range of 5.25-5.5 percent during 2023.

On that occasion, Perry said that to support the resilience of Indonesia's economic recovery and revival in the future, strengthening coordination and also future steps through five responses to the national economic policy mix.

The five responses include strengthening fiscal and monetary coordination, accelerating the transformation of the financial sector, including the implementation of the Financial Sector Development and Strengthening Law (UU P2SK), accelerating the transformation of the real sector including downstreaming and economic and green inclusion, digitizing economics and finance, as well as green economy and finance.

"This is a national economic policy mix that of course we need to continue to strengthen both between Bank Indonesia, Ministry of Finance, Financial Services Authority (OJK), Deposit Insurance Corporation (LPS) with of course support from Commission XI," he said.

With this coordination, Perry said that Indonesia's economic prospects for 2023-2024 are expected to continue recovery and revival with economic growth in 2023 predicted to be in the range of 4.5-5.3 percent. In fact, Perry said the Indonesian economy could likely grow 5.1 percent or even 5.2 percent with the opening of China's economy.

"Next year it could be 4.7-5.5 percent higher driven by consumption, exports, investments and also various improvement steps in MSMEs (micro, small and medium enterprises) as well as in the real sector," he said.

Furthermore, Perry said that Indonesia's 2023 inflation is expected to return to three plus-minus one percent targets, where core inflation will be maintained throughout this year at around three percent.

Meanwhile, inflation in the consumer price index (JCI) will return below four percent starting September 2023, and is targeted to be at two and a half plus minus one percent by 2024.

"External stability is also maintained as well as credit will increase by 10-12 percent this year and next year," he said.

In addition, the digital economic and financial sectors will experience a rapid increase, supported by developments from e-commerce, electronic money, and digital banking services that continue to encourage not only sources of economic growth but also economic and financial inclusion, especially encouraging traditional markets and the people's economy.