Airlangga Reveals Surprisingly, Economic Growth Will Move Lower In 2023 Due To COVID-19 Uncertainty

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that the global economy will move lower next year. According to him, there are a number of factors that make the economy move lower. One of them is the uncertainty of COVID-19 and its derivatives.

"Then in 2023 it is estimated that economic growth will be lower than in 2022," he said in a virtual press conference, Wednesday, February 16.

Not only because of the uncertainty from COVID-19, said Airlangga, the case of global inflation in a number of countries as well as the normalization of monetary policy which is read as an increase in interest rates also influenced the slowing economic growth in 2023.

Therefore, said Airlangga, new sources of financing are needed for economic growth. In addition, it was also stated that the deficit target was also agreed to be back below 3 percent in accordance with Law No. 2 of 2022.

The former Minister of Industry said that in the light of the various conditions above, structural reforms were needed. Among other things, because Central Indonesia encourages the investment sector or engine outside the state budget, increasing bank credit is important.

"One of the forms is related to the POJK regulation related to credit relaxation which is expected to not need a time limit, there needs to be a decrease in reserves from the banking side because we see the potential from the credit side of the banking sector is still high," he said.

Airlangga said that the current realization of bank credit is still slightly above 3 percent compared to third party funds or deposits which reached 12 percent, so there is still room for an increase in credit disbursement.

"Then the increase in PMA (foreign investment) and PMDN (domestic investment) investment in 2023 is pushed at the level of IDR 1,800-IDR 1,900 trillion, of course supported by increased competitiveness and also OSS (online single submission) is important," he said. .