Economic Growth Can Be Higher Than 2022 Provided These Two Conditions Are Fulfilled

Illustration (Photo: Freepic)

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo said that Indonesia still has ample space to pursue high economic growth this year.

According to Perry, Indonesia can even make achievements by recording a much higher growth rate compared to the 2022 period, which is above 5.3 per cent.

"It is unlikely that it will be higher than 5.3 per cent, unless exports to China increase and private consumption increases", he said when answering journalists' questions in Jakarta on Thursday, February 16.

Perry added, this figure was far above the estimated global growth of only around 2.3 per cent this year.

Furthermore, he explained that the easing of the zero covid policy in China brought great expectations in boosting the world economy, including Indonesia. China's move allows Indonesia to increase exports as capital for industrial activities in the country.

"This will encourage a source of growth for Indonesia", he said.

Perry also said that private consumption in Indonesia is expected to continue to rise in line with the government's decision to revoke the PPKM regulation.

"Keep in mind that confidence from consumers can also encourage private consumption", he said.

Meanwhile, BI itself estimates that economic growth in 2023 will be in the range of 4.5 per cent to 5.3 per cent with a maximum point of 5.1 per cent. Meanwhile, actual growth for 2022 was 5.31 per cent.