The foundation of Indonesia’s economy remains strong in the face of global economic uncertainty that has caused the closure of banks in several countries, according to a finance official.

“Our economic growth outlook is still very strong. In 2023, we expect economic growth to be in the range of between 5.0 to 5.3 percent annually,” Deputy Minister of Finance Suahasil Nazara said during the OCBC NISP Business Forum on Tuesday.

Moreover, the Consumer Trust Index in February 2023 is still within the optimistic zone, or above 100, with a score of 122.4, which is a foundation for optimism toward economic growth in 2023.

Indonesia’s Purchasing Managers’ Index (PMI) remains within the expansion level, or above 50, in February 2023, or 51.2 to be precise.

“Our industry players are still thinking of continuing expansion. Along with this, banking credit still grew 10.53 percent annually in January 2023,” he remarked.

The health of the national banking systems is also maintained, with the Credit Adequacy Ratio (CAR) of 25.93 percent in January 2023.

Nazara also expects national inflation, which stood at 5.5 percent annually in February 2023, to continue to decline until it reaches around 3.6 percent at the end of 2023.

“We expect that this will continue to provide support to our economy that has to continue to grow,” he noted.

The state budget will continue to be utilized optimally by the government to watch out for global economic turbulence and maintain the momentum of economic recovery.

“We will utilize the state budget to take quick responsive actions to anticipate various forms of turbulence. If the energy price overseas changes, then businessmen are expected to be able to continue the recovery,” Nazara stated.

SOURCE: ANTARA

YOUR INDONESIAN REPRESENTATIVE