BI Optimistic Indonesia's Economic Growth Reaches 5.1% This Year

Bank Indonesia Governor Perry Warjiyo said the Indonesian economy could grow 5.1 percent on an annual basis in 2023. Perry is optimistic that Indonesia can grow better this year in the midst of global turmoil if it encourages consumption, food security, and can control inflation.

"Inflation in the second half can reach below 4 percent. In the first semester inflation is still above 5 percent so we have to work hard to reduce inflation, especially food inflation," Perry said in the Kick Off of the 2023 National Food Inflation Control Movement (GNPIP) monitored in Jakarta as reported by ANTARA, March 5.

Controlling inflation by maintaining food security will be able to encourage public consumption which contributes more than 50 percent to Gross Domestic Growth (GDP).

"Indonesia can also increase exports to India and China, which are becoming a source of world economic growth," he said.

Currently, the government is trying to control commodity price inflation by synergizing, especially to control food prices such as rice and cooking oil.

Meanwhile, Bank Indonesia through 46 representative offices spread throughout Indonesia also continues to cooperate with local governments to increase food security.

GNPIP 2023 will be run with various programs, such as low-cost markets, strengthening cooperation between regions, subsidies for transportation costs, chili planting movements and replication of business models, providing agricultural tools and machinery to farmers, as well as strengthening coordination and communication.

"Let's continue to be vigilant and synergize and innovate to control inflation, especially volatile price inflation and the government regulates prices," Perry said.

Previously, the Deputy for Distribution and Services Statistics (BPS) of the Central Statistics Agency (BPS) Pudji Ismartini reminded the government to maintain commodity prices, especially household fuels and cooking oil which have the potential to encourage inflation in Ramadan 2023.