Sri Mulyani Optimistic That The Third Quarter Of The Economy Grows Above 5 Percent

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani stated that the condition of the Indonesian economy is still quite solid and under control even though it is faced with global shocks and weakness.

According to him, in the midst of fluctuations in the world economy, Indonesia's economic growth in the third quarter is expected to continue to grow positively, supported by controlled inflation, trade balance surplus, and improving people's purchasing power.

"We estimate that for the third quarter our economic growth remains above 5 percent. The performance of the APBN is also still quite solid and strong," he told the media crew in the middle of this week.

The Minister of Finance explained that until August 2023, the Purchasing Managers' Index (PMI) of Indonesian manufacturing continued to strengthen and be in the expansion zone at the level of 53.9, better than China, Japan, the United States, and Europe. This achievement increased compared to June 2023 which is at the level of 52.5.

"Indonesia, which is still surviving, PMI's expansion also shows an activity that strengthens at the level of 53.9," he said.

The Minister of Finance revealed that the trade balance also continued its surplus for 40 consecutive months although exports and imports still experienced a downward trend. Exports in August 2023 recorded 22 billion US dollars or contracted 21.2 percent (year on year/yoy). Meanwhile, imports in August 2023 were recorded at 18.88 billion US dollars, down 14.8 percent (yoy). Accumulation of Indonesia's trade balance surplus from January to August is 24.34 billion US dollars. This figure is a sharp decline compared to the accumulated January-August trade balance surplus last year which was at a level of 34.89 billion US dollars. This is what we must be aware of because of of course the resilience from the external side will greatly determine the stability of our economy in the short and medium term," he said.

On the other hand, the controlled domestic inflation rate is supported by stable food inflation. Inflation in August was recorded at minus 0.02 percent (month to month/mtm), 1.43 percent (year to date/ytd), or 3.3 percent (yoy).

Our inflation shows a fairly good level, namely at 3.3 percent. Compared to Asian countries and the G20, Indonesia's inflation is relatively in a moderately low situation. However, we must remain vigilant because the price of volatile food shows a sharp increase this August, which is its contribution at 2.4 percent," he said.

The Minister of Finance ensured that the State Budget would always be present to protect the welfare of the community and maintain economic stability in the face of economic dynamics. he said, the State Budget as a driving force as well as a safety tool is expected to accelerate economic growth, protect and provide tangible benefits for the community.

A healthy and strong state budget can protect the community and maintain our economic momentum to continue to grow and recover. However, we remain vigilant because we need to be aware of global conditions that will certainly slowly and surely have an impact on our state budget and economy. So, we must continue to maintain the health of our state budget and economy by continuing to calibrate economic movements and global dynamics," closed the Minister of Finance Sri Mulyani.