UOB For Indonesia's Economic Prediction Grows 5 Percent In 2023

UOB Indonesia economist Enrico Tanuwidjaja. (Photo: Doc. Antara)

JAKARTA - UOB Indonesia economist Enrico Tanuwidjaja predicts that the Indonesian economy will be able to grow by around 4.8 percent to 5 percent in 2023, while this year it will be below the level of 5 percent. “ In 2022 economic growth may be slightly below 5 percent,” he said at the UOB Indonesia Economic Outlook event in Jakarta, quoted from Antara, Friday, September 30. Enrico explained that this year's economic growth will be driven by domestic demand, especially public spending and investment as well as exports. He said that so far export growth has been good so that it is an opportunity for Indonesia's trade balance which has recorded a surplus record of 35.3 billion US dollars in 2021. Meanwhile, for inflation, Enrico predicts that it will increase in the second semester of 2022 with an average of 8 percent for the period September to December, one of which is due to the increase in fuel oil prices (BBM). “In terms of exchange rate we must also accept the fact that while the dollar strengthens with an interest rate increase, this will continue to reach 15,300 to 15,400,” he explained. Finally, Enrico also estimates that Bank Indonesia (BI) will increase the benchmark interest rate by 5.25 percent in the first quarter of 2023 and 5.5 percent in the second quarter of 2023. The “BI rate will rise 5 percent to 5.5 percent by the middle of the next year,” he said.