Perry Warjiyo, Governor of Bank Indonesia, has said that Indonesia’s economy will remain strong and has all the potential to grow higher than previous estimates, according to reporting for Tempo.
Perry explained in a press conferences on Thursday the reason for the optimism is because Indonesia’s economy is being “supported by increased exports and improving domestic demand, especially private consumption.”
According to Perry, exports have the potential to perform better than initial forecasts, driven by the positive influence of China’s economic recovery. Household consumption is also expected to grow high as economic players’ confidence is rising, say Tempo.
Other supporting sentiments include people’s increasing mobility following the lifting of PPKM, better investments with improving business prospects, increased inflow of foreign investments, and completion of the ongoing National Strategic Project (PSN).
“For 2023, Bank Indonesia predicts an economic growth that will be on an upward bias in the range of 4.5 to 5.3-percent,” he said.
Throughout the last year, Tempo report that Indonesia posted an overall growth of 5.31-percent (YoY), far above 2021’s 3.7-percent (YoY). The highest growth was recorded in the Sulawesi-Maluku-Papua (Sulampua) region, followed by Java, Bali-Nusa Tenggara (Balinusra), Kalimantan and Sumatra.