Bank Indonesia Projects Economic Growth In Central Java To Reach 5.3 Percent This Year

Illustration. (Photo: Doc. Antara)

JAKARTA - The Central Java Representative Office of Bank Indonesia projects economic growth in the province to reach 4.5-5.3 percent in 2023, driven by domestic economic stimulus.

"On the domestic side, investment performance is expected to grow, while household consumption performance is still holding up," said Head of Central Java BI Representative Rahmat Dwi Saputra in a written statement, quoted from Antara, Friday 10 February.

Meanwhile, from the external economic side, he predicts a decline due to declining export demand for textile products and textile products, footwear, and furniture from the United States and Europe.

According to Rahmat, to continue the trend of economic recovery in Central Java, real steps and policy synergies are needed to maintain the productivity of key sectors and maintain a conducive investment climate.

In 2022, Central Java's overall economic growth will reach 5.31 percent (yoy).

Meanwhile, Central Java BI also estimates that inflation will return to the target of three percent plus minus one percent.

The decline in inflation in 2023 will be supported by sloping food commodity prices in line with increased supply, controlled inflation expectations, and the slowdown in domestic demand due to ongoing global uncertainty.

Until January 2023, Central Java's inflation was recorded at 0.32 percent (mtm), lower than the national inflation of 0.34 percent (mtm). The decline in inflation was caused by inflation in the tariff component administered by the government (administered prices) due to lower gasoline prices, especially non-subsidized gasoline.

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The reduction in tariffs from groups regulated by the government was also affected by a reduction in air freight rates.

From the aspect of the payment system, BI will continue to encourage innovation and ensure the availability of quality rupiah currency throughout the Republic of Indonesia.

The realization of money circulation in Central Java in 2022 is IDR 30.6 trillion or grows by 14.18 percent (yoy).