Indonesia's Economic Growth In The Third Quarter Of 2022 Is Predicted To Reach 5.6 Percent

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto is optimistic that Indonesia's economic growth in the third quarter of 2022 can reach 5.6 percent on an annual basis or even higher.

The chairman of the Golkar Party said that Indonesia's economic growth is still on an optimistic path and is shown through several leading indicators that continue the positive trend. One of them, the Consumer Confidence Index (IKK) also still shows expansive consumer perceptions at the level of 117.2.

"Indonesia has a different situation from other countries. Indonesia's economic fundamentals are strong. Next year, the state budget deficit will be less than 3 percent," he said in an official statement quoted on Monday, November 7.

Furthermore, Airlangga said that in terms of inflation, in October 2022, inflation was recorded to have decreased to 5.71 percent on an annual basis compared to inflation in September 2022 which was recorded at 5.95 percent.

On a different occasion, the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, estimates that the economy in the third quarter of 2022 will grow by 5.7 percent on an annual basis.

"We still see that the economy in the second quarter of 2022 is quite strong, our estimate is to grow at 5.7 percent," he said, last Friday, November 4.

Febrio said that one of the indicators that reflected the strengthening of the economy in the third quarter was bank credit which recorded double-digit growth. As of September 2022, bank credit grew by 11 percent on an annual basis.

Investment loans and working capital loans recorded double-digit growth, respectively at 10.2 percent and 12.2 percent on an annual basis. Growth in consumption credit was also recorded high at 9.1 percent on an annual basis.

"This of course is much higher than the end of 2022, meaning the econ engine has started working quite quickly and we are in the phase of trying to maintain that momentum," he explained.

On the other hand, the trend of deposits or third party funds in banking shows a downward trend in growth, which in September 2022 reached 6.8 percent on an annual basis. Febrio said the decline reflected increased economic activity, especially consumption in the upper middle class.