Bank Indonesia Predicts Upward Biased Economic Growth Reaches 5.1 Percent

BI Governor Perry Warjiyo (Photo: Capture BI Youtube screen)

JAKARTA – Bank Indonesia (BI) is optimistic that economic growth throughout the 2023 period will strengthen compared to the previous projection.

BI Governor Perry Warjiyo said that his party estimates the growth rate will be in the range of 4.5 per cent to 5.3 per cent.

"Bank Indonesia believes that economic growth this year will experience an upward bias, reaching 5.1 per cent", he said during a press conference on Thursday, February 16.

According to Perry, this is based on several factors, including inflation expectations that are increasingly controlled.

"Inflation fell faster and lower than we expected", he said.

Meanwhile, two other factors that are considered to be quite decisive come from the internal and external sides.

"We hope the private sector can carry out higher consumption this year in line with the revocation of PPKM", he said.

Meanwhile, external factors were heavily influenced by the easing of the zero covid policy in China.

"This can increase the value of our exports to China", he said.

VOI noted that the central bank previously chose a conservative approach by estimating maximum economic growth of only 4.9 per cent. This level is the midpoint of the estimates made, namely 4.5-5.3 per cent.

Meanwhile, Indonesia's economic growth in the 2022 period was recorded at 5.31 per cent. This achievement was even above the government's target which was aiming for a maximum figure of 5.30 per cent.