Governor of Bank Indonesia (BI), Governor Perry Warjiyo is estimating that Indonesia’s national economic growth will be in the range of 4.7 to 5.5-percent year on year (yoy) by the end of 2023. By the end of Q3/ 2023, Perry predicts that domestic economic growth rate will reach 5.15-percent, supported by the trade, logistics, accommodation and service sectors, which contributed 45-percent, according to reporting from Tempo.
“For the entire year, it will be a little over 5-percent (yoy). The source of growth is coming from the domestic side, especially from consumption,” Perry said at the government’s work meeting with the House of Representatives’ (DPR) Budget Agency (Banggar), Tuesday (29/08/23.)
Perry said BI also continues to make efforts to control the domestic inflation rate. These efforts, he claimed, have succeeded in reducing the inflation rate close to BI’s target in the range of 2-4-percent. In July, the inflation rate stood at 3.08-percent (yoy), down from June’s 3.5-percent (yoy), report Tempo.
By 2023 year-end, Perry estimated, inflation could go down to around 2.9-percent. Meanwhile, next year’s rate is predicted to increase slightly with BI’s target of 2.5-percent plus/ minus 1-percent, or 1.5-percent to 3.5-percent.
“Our estimate for next year is that it could be around 2.7-percent,” Perry said.
Tempo report that in Q2/ 2023, the national statistics agency BPS recorded national economic growth at 5.17-percent (yoy), while the Gross Domestic Product (GDP) at current prices was recorded at IDR 5,226.7-trillion, while the GDP at constant prices reached IDR 3,075.7-trillion.
Source: Tempo
