JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir is optimistic that Indonesia will be free from the global recession which is expected to occur in 2023. In fact, Erick also predicts that the national economy will grow at 5 percent.
"Next year there are many perceptions that the world is in recession, yes, but Indonesia is not. God willing, it will grow by 5 percent," Erick told reporters, Tuesday, December 20.
Erick said the prediction was based on food prices and domestic energy.
According to him, if the government is able to curb the pace of food and energy prices, then inflation nationally can be suppressed.
"Of course it is the key to inflation, how do we hold back the pace of food prices and energy prices, but the body is still", he said.
Previously reported, 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.
"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.
For your information, the World Bank cut its projection for Indonesia's macroeconomic growth to 4.8 percent from 5.1 percent next year.
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