BI: Indonesia's Economic Growth Supported By Strong Domestic Demand

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) stated that national economic growth is still well supported by strong domestic demand and positive export performance.

BI Governor Perry Warjiyo said the continued increase in household consumption was driven by continued increase in mobility, improving income expectations, and controlled inflation.

"Investment is also strong, especially non-development investments in line with positive export performance and continuing downstreaming," he said some time ago.

According to Perry, tourism performance has also improved in line with the increase in foreign tourist visits. It was stated that Indonesia's economic improvement was confirmed by the results of a Bank Indonesia survey on increased consumer confidence and retail sales which grew positively.

"This is also reflected in the early indicator of the Manufacturing Purchasing Managers' Index (PMI) which is still in the expansion zone," he said.

For information, the latest data from the Central Statistics Agency (BPS) states that Indonesia's economic growth at the end of the first quarter of 2023 was 5.03 percent. This figure is higher than the same period the previous year with 5.02 percent.

"In the future, economic growth in 2023 is estimated to remain within the projection range of Bank Indonesia at 4.5 to 5.3 percent," he said.

"Bank Indonesia will continue to strengthen the synergy of government fiscal stimulus with macroprudential stimulus to encourage economic growth, especially in terms of demand," concluded BI Governor Perry Warjiyo.