The Real Sector In The Country Will Face Several Challenges In 2023, This Is Danamon's Economist View

Head of Economists of PT Bank Danamon Indonesia Tbk Wisnu Wardana. (Photo: Doc. Antara)

JAKARTA - Head of Economists of PT Bank Danamon Indonesia Tbk Wisnu Wardana said that in facing challenges in 2023, the real sector in Indonesia will rely on support from commodity profit deposits.

"Indonesia's real sector will be supported by deposits from the profits of previous commodities, although it will face challenges in terms of inflation and high interest rates," Wisnu said in an official statement, quoted from Antara, Wednesday, December 14.

He said improvements in terms of domestic demand would widen the current account balance to minus 1 percent of Gross Domestic Product (GDP) and volatility in exchange rates, thereby reducing the rupiah level in the first semester of 2023.

From the bond market, he believes there will be a risk of imbalance in supply with moderate demand in 2023, while the flow of foreign funds to the bond market itself will still be limited when comparing the real yield conditions of Indonesian bonds with other countries.

He estimates that the 10-year government bond yield could still be depressed at the start of the year, before finally heading to the level of 7.02 percent by the end of 2023.

Overall, he estimates that Indonesia's economic growth will still grow to 5.3 percent year on year (yoy) in 2023.

Meanwhile, Director of PT Batavia Prosperindo Asset Manajemen (BPAM) Eri Kusnadi said Indonesia's economic performance in 2023 will still boost the company's profit rate, so it is estimated that EPS Growth from issuers on the stock exchange will still grow 5 percent to 7 percent.

"Volateness and fluctuations may occur, they can be used as investment opportunities as long as they are carried out wisely, namely according to the risk profile and carried out in the medium-long term," said Eri.

However, his party reminded the need to be aware of the impact of negative sentiment that could affect the movement of the domestic capital market.

As is known, the IMF estimates that there will be a global economic slowdown in 2023 due to the Federal Reserve aggressiveness which raises its benchmark interest rate by 375 basis points throughout 2022.

On this occasion, Bank Danamon together with BPAM held a Danamon Wealth Series entitled Surviving the High Interest Rate Environment to discuss challenges and potential in 2023.

"Through this event, Danamon together with Batavia synergize to help loyal customers Danamon prepare themselves by providing clear navigation and description of the direction and trend of the economy to face the new year in order to make careful and appropriate investment decisions," said Bank Danamon Tbk Director Rita Mirasari.