"Household consumption is likely to grow even more in the second quarter of 2022 due to the momentum of Ramadan and Eid al-Fitr. At the same time as demand recovery, credit continues to increase," he noted in a statement in Jakarta, Thursday.
Investment realization in the second quarter of 2022 was recorded as the highest in the last decade, with the manufacturing sector as the main contributor, indicating that investor confidence was still very high in Indonesia.
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Trade surplus in the second quarter of 2022, reaching US$15.6 billion, also dampened the impact of monetary tightening on capital outflows and the depreciation of the rupiah, as higher exports than imports indicate greater foreign exchange liquidity in the market.
"The soaring commodity prices have brought positive momentum to exports because Indonesia is a net exporter of major energy commodities. The surplus in goods trade then pushed up the current account surplus," he stated.
The declining foreign ownership of financial assets, so far, has given Indonesia ample room to absorb global shocks as compared to other countries, especially in terms of inflation and currency volatility.
In terms of inflation, although rising, Riefky assessed that Indonesia's inflation, which was recorded at 4.94 percent year on year in July 2022, remained relatively moderate as compared to other countries.
"We see that the gloomy condition of the global economy is not visible in the domestic economic conditions. The windfall from the surge in commodity prices allows the government to expand fiscal stimulus to reduce inflation while building the recovery momentum. Thus, consumption and production activities will continue to run safely," he remarked.
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Translator: Sanya D, Azis Kurmala
Editor: Suharto
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