Annual Meeting Of Bank Indonesia: These Are Five Things To Watch Out For In 2023

JAKARTA Bank Indonesia (BI) has again held a routine agenda of the Bank Indonesia Annual Meeting which is a 2022 economic summary forum and a central bank event to convey the direction of monetary policy in 2023.

BI Governor Perry Warjiyo said that the 2023 condition was still filled with uncertainty triggered by global factors. When delivering his presentation, he said there were at least five important things to watch out for next year.

"First, growth decreased, triggered by the risk of recession in the United States and Europe," he said in Jakarta on Wednesday, November 30.

Second, inflation is very high because energy and food prices continue to increase. Third, the trend of higher and longer interest rates.

"Fed fund rate (US interest rate) can reach 5 percent and this will remain high during 2023," he said.

Fourth, the US dollar is very strong which makes the pressure of the depreciation of other countries' currencies continue, including against the rupiah.

"Fifth, cash is the king. It means withdrawing global investor funds and transferring them to liquid assets due to high risk," he stressed.

Therefore, Perry specifically asked all parties to increase synergy in strengthening policy coordination.

"We together with the government in the Financial System Stability Committee (KSSK) will continue to strive to direct the Indonesian economy in 2023 towards resilience and revival," he said.