Head Of BKF The Value Of Indonesia's Economic Growth Is Maintained Amid A Global Economic Slowdown

Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu. (Photo: Mery Handayani/VOI)

JAKARTA - The government said that Indonesia's economic growth in the third quarter of 2023 grew positively by 4.94 percent year on year (yoy).

Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said that Indonesia's economic growth was still relatively well maintained amid rising global economic risks and slowdowns.

Despite slowing down compared to the previous period, Indonesia is one of the countries with a relatively strong performance of economic growth.

Indonesia's economic growth is relatively stable amid global challenges. This shows that the APBN has carried out its function as a stabilizer and shock absorber to protect the public well," he said in a statement Tuesday, November 7.

In the future, he said, the State Budget will continue to be optimized to protect the community and increase economic growth.

In terms of expenditure, public consumption as the main contributor grew by 5.1 percent (yoy) in the third quarter of 2023.

Febrio said that the rate of household consumption that grew positively was supported by people's maintained purchasing power with controlled inflation levels.

The role of the State Budget continues to be optimized to protect the community through the provision of food assistance for low-income communities and strengthening the distribution of food supplies.

In addition, Febrio said central and regional coordination through the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID) would continue to be strengthened to maintain price stability.

Febrio said the global slowdown trend is expected to continue, and has the potential to affect economic growth in 2023 by around 5 percent.

To maintain economic growth performance, the Government intervened in the form of policy packages at the end of the year.

In addition, the policy includes thickening social assistance for mitigation of the impact of El Nino, accelerating the distribution of KUR programs amid increasing interest rates, as well as policies to strengthen the housing sector.

"The government will continue to strengthen coordination and prepare mitigation measures to maintain the sustainability of the positive trend of national economic growth," closed Febrio.