JAKARTA – Bank Indonesia has opened its voice regarding the threat of a recession that threatens the national economy. Through BI Governor Perry Warjiyo, the monetary authorities in the country provided information to the public.
According to Perry, Indonesia's economic condition is on the right track of recovery. Various macro indicators show that productive activity has gradually improved after being depressed by the COVID-19 pandemic since two years ago.
"Let's just look at the facts and the numbers. Indonesia's economy can grow by 5 percent or even higher than 5 percent," he said via an online channel on Tuesday, May 24.
Perry's statement is in line with the release of the Central Statistics Agency (BPS) which stated that the economy grew 5.01 percent in the first quarter of 2022.
"Second is that there is indeed an increase in inflation, which may be slightly higher than 4 percent (the government's target is 3 percent plus minus 1 percent), but this has been responded through fiscal policy by increasing subsidies. in supporting efforts to recover the economy with a policy mix that is pro-stability.
“From this fact, we cannot say that there will be a recession, stagflation or other economic terminology. Therefore, let's together encourage the economy to grow and Alhamdulillah, vaccinations will continue to be carried out, and together maintain health protocols in their activities," he explained.
The latest, concrete evidence of Bank Indonesia in supporting the national economy is by maintaining the benchmark interest rate at 3.50 percent. The sloping trend of the BI rate is believed to provide greater room for banks and the public to expand their business through credit.
“Our economy continues to improve. For the whole year, BI estimates (the economy) will grow 4.5 percent to 5.3 percent. We and the government will continue to maintain macro stability, monetary stability and a better financial system. Let's build the economy together and recover the economy," said BI Governor Perry Warjiyo.
For information, currently several countries in the world are facing difficulties due to their inability to manage the dynamics that occur, such as the impact of the COVID-19 pandemic and geopolitical conditions in Eastern Europe. This situation forced a stronger economic pressure and had implications for an economic recession.
Meanwhile, a recession is a decline in gross domestic product or when real economic growth is negative for two or more quarters of a year.
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