Strengthen Economic Growth, Bank Indonesia: In The Future, Risk Of Inflation Is WorthARY Of

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) welcomes the strong economic performance in the third quarter of 2022 which grew by 5.72 percent year on year (yoy) amidst the global economic slowdown and rising domestic inflation. This achievement is higher than the previous quarter's achievement of 5.45 percent.

Director of the Communication Department Junanto Herdiawan said the moncer score was supported by continued improvements in domestic demand and continued high export performance.

"The improvement in the national economy is also reflected in the performance of various business fields and all regions that remain good," he said in a written statement quoted on Tuesday, November 8.

According to Junanto, in the future, economic growth is predicted to remain strong driven by improvements in domestic demand in line with continued increased mobility and continued completion of the National Strategic Program (PSN).

"However, the impact of the global economic slowdown on export performance and the potential delay in household consumption due to rising inflation should be watched out for," he said.

Junanto detailed, in terms of spending almost all components showed positive growth. Household consumption still grew by 5.39 percent even though it slowed down compared to the previous quarter's achievement of 5.51 percent due to the holiday factor.

"The growth that remains high is in line with the increase in community mobility, the limited impact of the adjustment of fuel oil prices (BBM), as well as the distribution of social assistance and energy subsidies," he stressed.

Then, investment performance also improved by growing by 4.96 percent, especially non-development investments, both machinery and equipment.

Meanwhile, government consumption still contracted by 2.88 percent, originating from the decline in spending on goods for handling COVID-19 and National Economic Recovery (PC-PEN).

The increase in exports continued with growth reaching 21.64 percent, supported by the demand for key trading partners who remained strong and the policy of accelerating exports of palm oil. Imports also grew high by 22.98 percent in line with the high performance of domestic demand and exports.

Then in terms of business fields, almost all of them grew positively, supported by the processing, mining, agriculture, and wholesale and retail trade industries.

"Spatially, economic improvement is supported by growth that occurs throughout Indonesia, with the highest growth recorded in the Sulawesi-Maluku-Papua (Sulampua) region, followed by Bali-Nusa Tenggara (Bali Nusra), Java, Kalimantan, and Sumatra," concluded Junanto.