BSI Optimistic That Indonesia's Economy Is Maintained Amid Global Economy Turbulence

Photo: Aris Nurjani/VOI

JAKARTA - PT Bank Syariah Indonesia Tbk (BSI) is optimistic that the Indonesian economy will be maintained at the level of 5 percent until the end of 2023 amid various economic pressures, starting from rising interest rates to external factors such as the lack of recovery in the global economy.

Director of Treasury & International Banking BSI, Moh Adib said he was still optimistic that the Indonesian economy would be closed positively, although in the third quarter of 2023 Indonesia's economic growth was slightly corrected to 4.94 percent compared to the previous quarter.

"We are optimistic that we can close this year at 5.0 percent until the 2023 IV or 5.04 percent in full year," Adib said at the 2024 BSI Sharia Economic Outlook event, Friday, November 17.

Adib added that this could happen because it was driven by the strong consumption of Indonesian households. Meanwhile, household consumption in the III-quarter was 5.06 percent (yoy) and contributed to GDP by 52.62 percent.

Another factor comes from the flow of investment in Indonesia which is still maintained, especially domestically. Where the investment realization in the third quarter of 2023 was IDR 374.4 trillion. This figure is higher than the second quarter of 2023 of IDR 374.4 trillion and the third quarter of 2022 of IDR 307.8 trillion.

Adib added that the government continues to pursue a number of targets in the construction of the 2024 National Medium-Term Development Plan (RPJMN) which will have a positive impact on the Indonesian economy.

"Finally, we have reached more than 42 months since Indonesia's trade balance has been positive amid the tension of global geopolitical," he explained.

In addition, Adib also said that the Indonesian government succeeded in controlling inflation to be stretched by 3 percent plus minus 1 percent.

"In order to achieve this, BI's benchmark interest rate is relatively maintained at a certain level which is quite high during this year and we also predict this will continue in 2024," he explained.