The 2023 South Sumatra Economic Growth Rate Is Predicted By BI To Stay Strong In The Range Of 5 Percent

Economic Growth (ANTARA)

JAKARTA - The pace of economic growth in the South Sumatra region in 2023 is predicted to continue to grow strongly or be in the range of 5 percent. Deputy Head of Bank Indonesia Representative for South Sumatra Province, Nurcahyo Heru Prasetyo, said this was driven by the acceleration of community mobility and business actors who continued to encourage consumption, although not as high as in the previous year.

"Since 2022 until now, the South Sumatra economy is still growing quite well above 5 percent," he said, quoted from ANTARA, Saturday, October 14.

According to him, there are several important notes that are estimated to affect South Sumatra's economic growth until it closes in 2023. Then, there is a global economic slowdown which is considered to have an impact on the slowdown in the consumption side of households in South Sumatra.

"The slowdown in the global economy will certainly affect public consumption, especially inflation, the increase in imported goods, and the exchange rate will also weaken," he explained.

Then, the slowdown in household consumption in South Sumatra was influenced by the cancellation of one of the major activities, namely FIFA U-20 which was previously planned to take place at the Gelora Sriwijaya Stadium, Palembang City.

Meanwhile, in terms of foreign exports, he said, weakening global coal demand and prices is also a threat. This is because it can have an impact on the export value of South Sumatra which is dominated by coal export commodities.

However, looking at the investment side, there has been a fairly good acceleration in South Sumatra in line with the increase in building investment supported by private projects including the South Sumatra 8 PLTU and toll roads.

"For government consumption posts, there is indeed a decline in the regional government budget ceiling in South Sumatra. However, we hope that the local government will be able to continue to coordinate and realize it well so that it can boost South Sumatra's economic growth," said Nurcahyo.