Bank Indonesia Realistis, Economic Growth Set 4.9 Percent This Year

BI Governor Perry Warjiyo (Photo: Doc. Bank Indonesia)

JAKARTA Bank Indonesia (BI) encourages industry players in the financial services sector to remain optimistic but vigilant in navigating the 2023 business year. This is because a number of pressures are believed to be stronger, driven by global factors.

On that basis, BI Governor Perry Warjiyo chose to be realistic by setting economic growth no higher than last year.

This can be seen from the large range of growth rates that reflect the uncertainty of the situation.

"Bank Indonesia estimates growth this year to be 4.5 percent to 5.3 percent, possibly 4.9 percent. It could be that consumption is fast towards 5 percent," he said when giving a speech at the 2022 Bank Indonesia Transparency and Accountability Report (LTABI), Monday, January 30.

Perry explained, for last year's growth forecast, it could exceed the 5 percent level thanks to various positive achievements, such as the trade balance surplus and controlled inflation under central bank expectations.

"Indonesia's 2022 economy is biased upwards, it could be 5.1 percent or even 5.2 percent," he said.

Previously, Minister of Finance (Menkeu) Sri Mulyani had said that the economic growth in 2022 could penetrate 5.3 percent.

He conveyed this tone of optimism because inflation was controlled and fiscal performance which succeeded in exceeding the revenue target as an indicator of the recovery of the domestic economy.

"At the end of last year we were stable and there were no extraordinary obstacles," said the Minister of Finance some time ago.

VOI noted that economic growth had perched more than 5 percent in the fourth quarter in a row, believes the fourth quarter of 2021 to be 5.02 percent year on year (yoy), the first quarter of 2022 at 5.01 percent.

Then it increased in the second quarter of 2022 to 5.44 percent and again shot up to 5.72 percent in the third quarter of 2022.

The official release of economic growth will be delivered by the Central Statistics Agency (BPS) this week.