BI Governor: Moody's Projects Indonesia's Economy To Grow 5 Percent In 2024

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Doc. Antara)

JAKARTA - The credit rating agency Moody's projects that the average growth of Indonesia's economy in 2024-2025 will remain at the pre-pandemic level of around 5 percent. "The average is higher than other Baa-ranked countries, namely growing in the 3 percent range," said Bank Indonesia Governor (BI) Perry Warjiyo in Jakarta, quoted from Antara, Friday, April 19. The strong economic growth forecast is mainly supported by the success of various structural reforms pursued by the government directed at improving investment climates that have an impact on increasing foreign investment, job creation, export growth and increasing government revenue. In the external sector, Moody's views the resilience of the external sector to be maintained, reflected in an increasing trade balance surplus.Perry said that the implementation of downstreaming policies is believed to be one of the important factors that affect the increase in commodity export share that has added value, thereby increasing commodity export diversification and reducing its sensitivity to prices. These developments are further able to encourage an increase in foreign exchange reserves that reached 140.4 billion US dollars or equivalent to 6.4 months of imports at the end of March 2024.Moody's assesses the synergy of monetary and fiscal policies which is firmly at the basis for maintaining policy credibility.

The implementation of the policy mix pursued by Bank Indonesia is seen as being able to reduce the volatility of the rupiah exchange rate amid the uncertainty of the global financial market which affects foreign capital inflows.

Sementara, komitmen pemerintah untuk tetap menjaga defisit fiskal di bawah batas 3 persen dari produk domestik bruto (PDB) mampu menjaga rasio utang pemerintah terhadap PDB tetap rendah dibandingkan negara-negara lain yang berada pada peringkat yang sama.Dalam jangka menengah, keberhasilan implementasi kebijakan reformasi pemerintah menjadi kunci tercapainya target pertumbuhan ekonomi yang lebih tinggi sejalan dengan visi Indonesia Emas 2045.