Indonesia’s Economy to Top 5 Percent in 2023: Central Bank
Jakarta. Indonesia is forecast to see a robust economic growth of above 5 percent this year thanks to domestic consumption and investment, according to the country’s central bank.
Indonesia’s economy rose 5.31 percent in 2022, quite a jump from the 3.7 percent growth that the current ASEAN chair had registered in the previous year. The country’s gross domestic product (GDP) will likely expand between 4.5 percent and 5.3 percent in 2023. GDP growth is expected to accelerate to 4.7 percent and 5.5 percent in 2024, Bank Indonesia data shows.
"Indonesia is among the best-performing economies despite the global turbulence,” Bank Indonesia Governor Perry Warjiyo said at a side event to the ASEAN Finance Ministers and Central Bank Governor Meeting (AFMGM) in Jakarta on Tuesday.
“Indonesia’s GDP growth forecasts for this year stand at around 4.5 percent and 5.3 percent. So that is about 5.1 percent economic growth,” Perry said.
Perry told the forum that the country would be able to keep inflation within its target range of 3 percent, plus or minus 1 percentage point, for 2023. The central bank reported Indonesia’s consumer price index (CPI) inflation amounted to 5.51 percent in 2022. The numbers are expected to go down to 2-4 percent this year. Indonesia’s inflation based on CPI is projected to trend around 1.5 percent and 3.5 percent in 2024; still within the government’s target of 2.5 percent, plus or minus 1 percentage point.
Indonesia posted a credit growth of 11.35 percent year-on-year (yoy) in 2022, more than double than the 5.24 percent it recorded in the previous year. Banking lending will rise between 9 and 11 percent yoy in 2023. Credit growth is projected to reach around 10 and 12 percent yoy in 2024, during which Indonesia will host its presidential election.
Satvinder Singh, the deputy secretary-general at the ASEAN Economic Community, earlier this month said he foresaw the Southeast Asian bloc’s GDP to rise 4.6 percent in 2023. The region is expected to witness a 4.9 percent growth next year.
Read More: Vietnam to Ink ASEAN Payment Connectivity Pact This Week
Tags: Keywords:Related Articles
Philippines Eyes ASEAN Halal Standards
The Philippines is eyeing a halal recognition deal with Indonesia as it seeks regional standards for Sharia-compliant goods.
ASEAN Won’t Launch a ‘Bad’ South China Sea Code, Philippines Says
ASEAN chair Philippines doubts Beijing and the group will launch a poorly made code of conduct on the disputed South China Sea.
Doors Closed for Bangladesh, PNG’s ASEAN Bids
Bangladesh and Papua New Guinea face an uphill battle in their quest to join ASEAN as they are not located in Southeast Asia.
Who Will Lead Bank Indonesia? Markets Put Independence Above Politics
Markets are watching Indonesia's BI succession, with investors prioritizing credibility and central bank independence over politics.
ASEAN Irons Out Refinery Details for Regional Oil Stockpile
The Southeast Asian bloc has been trying to revive the ASEAN Petroleum Security Agreement (APSA) following the Hormuz blockade.
ASEAN Common Currency Remains Unlikely
ASEAN Secretary-General Kao Ki Hourn says that "every member state is happy with its own currency".
BI Governor Appointment Seen as Referendum on Central Bank Independence
An economist says markets will judge Indonesia's commitment to central bank independence through the selection of BI's next governor.
KPK Leaves Door Open to Question Former BI Governor Perry Warjiyo in CSR Graft Probe
KPK says it may question former BI governor Perry Warjiyo in the central bank's CSR corruption probe as investigators press on.
Indonesian Stocks Open Lower as BI Leadership Transition, Fed Decision Keep Investors Cautious
Indonesian stocks opened lower as BI's leadership transition and the Fed decision kept investors cautious. JCI slipped 0.16%.
Acting BI Governor Urges Markets Not to Panic After Perry's Resignation
Acting Bank Indonesia Governor Destry Damayanti said monetary policy will remain unchanged following Perry Warjiyo's resignation.The Latest
Indonesia Sets August CPO Reference Price at $996.52 per Ton
Indonesia lowered its August CPO reference price to $996.52 per ton, reducing the export duty on palm oil shipments.
Five Dead, 227 Rescued After Ferry Fire Off Madura
At least 227 people have been rescued and five have died after a ferry caught fire off Madura, rescuers say.
AI’s Thirst for Water to Soar 129%, UN Warns
As many as 40% of the data centers in the world are in high-water stress areas, UN envoy Retno Marsudi says.
Philippines Eyes ASEAN Halal Standards
The Philippines is eyeing a halal recognition deal with Indonesia as it seeks regional standards for Sharia-compliant goods.
Ferry Carrying 250 People Catches Fire Off Madura, Rescue Underway
A rescue operation is underway after a ferry carrying about 250 people caught fire off Madura, East Java.Most Popular
