Despite Heavy Challenges, The Government Commits To Achieve Economic Growth 5.3 Percent In 2023

Illustration (Photo: Freepic)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani revealed the challenges that must be faced by Indonesia in maintaining economic growth in the next 2023 period.

According to him, the government is targeting a fairly high growth target next year at 5.3 percent.

This is an assumption that already exists in the 2023 State Budget Law. So if I talk about 5.3 percent, it's because it's in the applicable regulations. However, just like we see every year, there are always upside risk, downside risk. Geopoliticals also have an impact," he said in a written statement on Friday, December 2.

Sri Mulyani explained that a number of global challenges will be faced next year.

First, the uncertainty that arises from geopolitical tensions between Russia and Ukraine.

"The war can be a turning point in 2023 if there are negotiations and then the war stops," he said.

Second, the challenges stemming from the phenomenon of food prices and energy are still high, thus increasing global inflation.

"The momentum of world economic recovery has indeed become moderated due to the very high increase in global inflation," he added.

Furthermore, the state treasurer said, if other dynamics arise from the increase in the benchmark interest rate, especially from the Central Bank of the United States The Federal Reserve.

Sri Mulyani said, the increase in interest rate and tightening monetary policy was designed to moderate the demand side so that inflation did not move wildly.

"The impact on the economy in developed countries may be felt throughout 2023. The impact on our economy is that if the interest rate is high, there is a capital outflow. The interest rate in the country, Bank Indonesia is forced to also adjust to this global pressure trend," he said.

"Then, the impact will be on the economy next year, how much our investment resilients can still survive in conditions where interest rates tend to be higher than this year," closed the Minister of Finance Sri Mulyani.