Approaching the Middle of the Year, Indonesia's Economy is Confirmed to be Strong and Stable

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani stated that Indonesia's economic growth remains resilient.

"Strong and stable growth was driven by all components of the gross domestic product (GDP). Spatially, positive growth trends are occurring in all regions," she said in his presentation on the realization of the state budget, Monday, May 22.

According to the Minister of Finance, this optimistic attitude can also be seen from the consistently declining unemployment and poverty rates, namely the February 2023 unemployment rate of 5.45, sloping from February 2022 which was 5.83. He also conveyed that the poverty rate for September 2022 was 9.57, a decrease from September 2021 at 9.71.

"This decline reflects quality economic growth and will continue to be accelerated," she said.

Minister of Finance added that Indonesia's Manufacturing PMI is in the expansion-acceleration zone with India, Thailand, Turkey, the US, Canada, Saudi Arabia and Mexico. It was stated that the Manufacturing PMI was maintained at an expansive level of 52.7 and continued to improve (March 51.9).

Furthermore, the domestic inflation rate was under control during the National Religious Holidays (HBKN) Ramadhan and Eid 2023. Stability in food prices was well maintained, and even tended to decline.

The minister said, Indonesia's April inflation rate reached 4.3 percent year on year (yoy), while inflation in other countries was still quite high, even Argentina reached 108.8 percent and Turkey reached 43.7 percent.

"From the external side, the performance of the Trade Balance (NP) continues to be a surplus, entering the 36th month," he added.

In detail, the April 2023 NP was a surplus of 3.94 billion US dollars, with exports of 19.29 billion US dollars and imports of 15.35 billion US dollars, decreased by 29.4 percent (yoy) and 22.3 percent ( yo).

"Most of the leading export commodities have decreased due to moderation in commodity prices," he said.

On the other hand, Indonesia has also experienced an increase in visits by foreign tourists, up 470.4 percent (yoy) in March 2023, even though it has not yet reached pre-pandemic levels.