BI Calls Domestic Requests Able To Top The Indonesian Economy In The Midst Of Global Receiption Threats

Deputy Governor of Bank Indonesia, Dody Budi Waluyo. (Photo: Doc. Antara)

JAKARTA - Deputy Governor of Bank Indonesia, Dody Budi Waluyo, said that domestic demand helps in supporting the economy amid the issue of a global recession that is said to have occurred in 2023. "We see that in terms of export, it is still a surplus, but there is indeed a challenge in the future whether global demand is high. But of course there is support from domestic demand, investment consumption is starting to run," said Dody after the launch of the book on strengthening economic and tourism strategies in The Nusa Dua area, Bali, quoted from Antara, Friday, December 18. In Badung Regency, Friday, Dody said that the national economy is also still resilient. Domestic demand has improved, supported by still high private consumption, positive export performance, and strong consumer confidence. "This is reflected in the economic growth in the third quarter of 2022 which reached 5.72 percent (yoy), higher than the previous quarter's achievement of 5.45 percent (yoy). This good development is also reflected in "The performance of various business fields and the economy of all regions remains good," he said. The belief that in 2023 Indonesia's economic growth will still be strongly supported by solid domestic demand is also reflected in the conditions this year. Dody said the government's stimulus policy through social assistance to maintain people's purchasing power from the impact of rising inflation on the consequences of diverting fuel subsidies as an example of supporting economic improvement. With developments tersebut, kata dia, pertumbuhan ekonomi 2022 diperkirakan tetap bisa ke atas dalam kisaran proyeksi Bank Indonesia pada 4,5-5,3 persen."Ini menjadi penting, di tengah ekspor yang mulai melambat ada yang menggantikan (permintaan domestik, Red). Jadi dengan itu percayaan kami dari Bank Indonesia bahwa ekonomi kita di tahun depan tumbuh cukup baik, kami optimis meski mungkin tetap di bawah perkiraan awal karena memang secara global mengalami penurunan," kata Dody.Di sektor pariwisata yang starting to recover, the Deputy Governor of Bank Indonesia also hopes that the consumption side of tourists, especially foreign tourists, will not be affected by the global recession, unless the pandemic shakes the world again and there are restrictions on mobility. "But now first we have to realize that if domestic tourists replace foreign tourists, it will still contribute added value to the economy in the regions, yes of course we still hope for foreign tourists, but if Indonesian tourists can be encouraged," "There will be added value," he said. In addition to racing against domestic demand support, Dody said that his party also responded to economic conditions, namely the high expectations of inflation to 3.31 percent through the policy of raising interest rates. "Based on these developments, just yesterday the Board of Governors' Meeting (RDG) of Bank Indonesia decided to raise the policy interest rate (BI7DRR) by 50 bps to 5.25 percent," he said. front load, predictive, and forward looking to lower inflation expectations and ensure future core inflation returns to the target in the first half of 2023. This policy is called a reflection of Bank Indonesia's commitment to direct policy mixes to maintain economic stability and momentum. "We direct Bank Indonesia's monetary policy to maintain stability (pro stability), while the other four policies are macroprudential, payment systems, market deepening. "financial, as well as a green and inclusive financial economy, are directed to support the national economic recovery," said Dody.