IMF: Indonesia’s 2023 Economic Growth Projections Raised

Kompas are reporting on the recent economic growth projections from the IMF for Indonesia, which has increased from a previous estimate of 4.8-percent in the January 2023 edition of the World Economic Outlook (WEO) report to 5.0-percent.

The projection was made by the IMF by estimating the performance of the Indonesian government in maintaining the current account balance, inflows of foreign direct investment (FDI) and portfolios. The IMF said that macro policies must be focused on maintaining stability and building policy space to deal with future shocks.

This Year Assistant Director of the IMF Western Hemisphere Department, Cheng Hoon Lim, said Indonesia’s economic policies had succeeded in showing healthy growth, reduced inflation, and a stable and profitable financial system. “The authorities use monetary and fiscal policy space flexibly to facilitate economic adjustment to significant global shocks, putting the Indonesian economy in a good position for sustainable strong and inclusive growth,” he said in an official statement, quoted on Sunday, say Kompas.

He added, Indonesia’s economy is projected to continue to be strong. This was driven by the high prices of some of Indonesia’s export commodities. Economic growth will be driven by recovery in domestic demand and solid export performance.

Nevertheless, Cheng warned of the possibility of an economic slowdown given the tightening of policy regulations and the normalization of commodity prices. “In general, risks are balanced. A faster recovery in China or easing of global inflationary pressures can strengthen demand for Indonesian exports,” he added.

He said that a sudden tightening of global financial conditions or a global slowdown that weakened the trade balance could put pressure on the rupiah. Also, intensification of geopolitical tensions could also disrupt supply chains and amplify inflationary pressures.

Furthermore, Cheng said, high commodity prices and strong economic growth, as well as the new Tax Harmonization Law, helped increase tax revenues. On the other hand, the increase in the price of fuel oil (BBM) in September helped stem the rising subsidy bill. “Going forward, fiscal policy in 2023 must remain broadly neutral, enabling Indonesia to continue to meet its development needs while maintaining policy credibility,” he said.

Source: Kompas

Latest Article
Yuliot Inaugurated as Deputy Minister of Investment
According to reporting from Antara News, President Jokowi inaugurated the former deputy of investment...
QR Code Payments Between Indonesia, S. Korea Linked
According to reporting from Antara News, Indonesia and South Korea have agreed to expand cooperation...
President Jokowi Discusses Trade Cooperation with UAE
President Jokowi held a bilateral meeting with UAE President Mohamed bin Zayed Al Nahyan (MBZ) at Qasr...
Indonesia's Trade Balance Remains in Surplus in June 2024
  Indonesia’s Central Statistics Agency (BPS) announced a trade surplus of US$2.39 billion...
Minister: Downstreaming Leads to a Golden Indonesia
Speaking at a public lecture at the State Institute of Public Administration (IPDN) in Sumedang, West...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.