Indef: Indonesia's 2022 Economic Growth Of 5.31 Percent Is Good Enough

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JAKARTA - The Institute for Development of Economics and Finance (Indef) for the economic and financial studies institute assesses that Indonesia's economic growth in 2022 of 5.31 percent compared to the previous year (year-on-year/yoy) is quite good and reaches the target.

As is known, the government has targeted economic growth last year in the range of 5.3 percent.

"This achievement is quite good amid the global pressure that will occur in 2022," said INDef Deputy Director Eko Listiyanto, quoted from Antara, Tuesday, February 7.

He explained that the dynamics of the economy last year were seen from the very fast movements of the exchange rate in Indonesia, as well as in other countries such as Vietnam and the Philippines.

Not only did the rupiah weaken, but the exchange rates of the Vietnamese and Philippine currencies also depreciated as a result of the strengthening of the United States (US) dollar driven by the anticipation of the US central bank, The Fed, to keep inflation in Uncle Sam's country.

Nevertheless, Eko reminded that Indonesia's economic growth achievements were still not strong enough when compared to Vietnam and the Philippines, which respectively grew 8.02 percent (yoy) and 7.6 percent (yoy) last year.

"Even Vietnam recorded that growth was the highest in the last 25 years," he said.

Therefore, he recommended three things that the government could do this year, namely first is to dampen global economic turmoil by encouraging industrial sector growth above economic growth.

Second, increasing purchasing power through proactive poverty alleviation programs or not just distributing social assistance, as well as controlling inflation quickly. Third, higher quality and higher economic growth is urgently needed to ensure reduced levels of poverty and unemployment.