"Given the potential of the domestic economy and the government's anticipatory measures, it is quite realistic to estimate that the Indonesian economy in 2023 will grow in the range of 5.3 to 5.9 percent," the minister noted at the Plenary Meeting with the House of Representatives on Tuesday.
Indrawati remarked that based on the effect of the commodity boom in 2011 and 2012, investment would be the factor that encourages growth, especially in taking advantage of the high commodity prices and encouraging economic transformation.
The continuity of the National Strategic Project and development of the Nusantara Capital City would promote growth in investment as well as stimulate investment activity in the private sector in future.
Improved financial sector intermediation marked by increased growth in bank credit would also back up investment dynamics.
As for consumption, the impetus for public consumption would be stronger in line with improvement in the level of welfare.
Consumption would return to its normal pattern, for instance, clothing and footwear consumption, which recorded some decline in purchase.
Leisurely activities, such as tourism and recreation in parks, were estimated to see some growth this year and even improve better in the following year.
Moreover, the dynamics and prospects of the global economy would impact Indonesia's external sector in 2023, as export performance was estimated to remain strong while demands for import would also increase.
Indrawati reiterated that the government will constantly push for economic transformation, which was expected to have a significant and inclusive impact on the performance of Indonesia's growth.
In order to pursue the goal, it was necessary to promote implementation of the structural reform agenda that had been done through improving the quality of human resources, expediting infrastructure development, and improving regulations and bureaucracy.
Efforts to reinforce downstreaming and revitalize the industry would boost performance of the manufacturing sector, while development of the digital economy would drive the performance of the modern service sector, particularly the trade and information communication aspects.
Related news: Economic growth backed by people-first policies: Minister
Related news: Finance Minister targets economy to grow 5.3-5.9 percent in 2023
Related news: Development of MSMEs paramount to boosting economic growth: Minister
Translator: Astrid F H, Mecca Yumna
Editor: Sri Haryati
Copyright © ANTARA 2022
