Knock! Jokowi Targets 5.3 Percent Economic Growth In The 2023 State Budget Bill

President Joko Widodo (Photo: Antara)

JAKARTA - President Joko Widodo (Jokowi) has set an economic growth target of 5.3 percent in the 2023 State Budget Bill.

This was conveyed by the President when giving a speech in front of the DPR Plenary Meeting today.

According to Jokowi, the government will make maximum efforts to maintain the sustainability of strengthening the national economy.

"Consistent production expansion will continue to be encouraged to create as many jobs as possible. New sources of growth must be realized immediately. The implementation of various strategic agendas will continue to be accelerated for economic transformation," he said at the Senayan Parliament Complex, Jakarta, Tuesday, August 16.

Jokowi added that investment must be encouraged and the competitiveness of national manufactured products in the global market must be increased.

"With the strengthening of the private sector as the engine of growth, fiscal policy management can be more directed to create a balance between improving productivity and competitiveness, by maintaining soundness and fiscal sustainability to deal with risks and turmoil in the future," he said.

Then, inflation will be maintained at around 3.3 percent which illustrates the sustainability of the demand side recovery, mainly due to the improvement in people's purchasing power.

Then, the average exchange rate of the rupiah is estimated to move around Rp. 14,750 per US dollar and the average interest rate of 10-year Government Securities (SUN) is predicted to be at the level of 7.85 percent.

Furthermore, the price of Indonesian crude oil (ICP) is estimated to be around US$ 90 per barrel.

On the other hand, oil and gas lifting is estimated to reach 660,000 barrels per day and 1.05 million barrels of oil equivalent per day, respectively.

"The architecture of the 2023 state budget must be able to reduce doubts, generate optimism, and support the achievement of development targets, but still with high vigilance. The state budget must continue to play a role as a driving force for growth and a counter-cyclical instrument," concluded President Jokowi.