Ahead Of Ramadan, BI Says The Economy Remains Strong Driven By Domestic And Export Demand

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) stated that national economic growth remained strong driven by increased domestic demand and exports.

BI Governor Perry Warjiyo revealed that household consumption is expected to be stronger in line with increased mobility in all regions, retail sales, and improving consumer confidence.

"Investment is also solidly supported by the completion of the National Strategic Project (PSN) and the increase in foreign investment inflows (PMA)," he said after the Board of Governors' Meeting (RDG) quoted on Sunday, March 19.

According to Perry, the increasing domestic demand outlook is also influenced by the continued impact of export improvements.

"Exports of goods and services are estimated to be higher than the previous projections in line with the improvement of global economic prospects," he said.

It was explained that developments until February 2023 showed Indonesia's non-oil and gas exports grew high, including from the increase in coal exports, metal ore, and CPO to China.

In addition, he continued, domestic and foreign tourist visits are also expected to increase. Perry said, spatially, better export prospects support economic prospects in the higher Kalimantan, Sumatra, and Sulawesi-Maluku-Papua (Sulampua) regions.

"Based on the Business Fields, the prospects for the Industrial, Processing, Large and retail trade, as well as transportation and warehousing sectors are expected to grow strongly. With these various developments, economic growth in 2023 is predicted to be biased upwards in the range of 4.5-5.3 percent," he said.

Meanwhile, this year, the central bank ensures the availability of rupiah currency with quality maintained throughout the territory of the Unitary State of the Republic of Indonesia (NKRI).

"Through the Semarak Rupiah Ramadhan and Berkah Idulfitri (Serambi) 2023 program, Bank Indonesia will provide cash of IDR 195 trillion," he concluded.