Supply disruptions have triggered spikes in the global commodity prices and pushed up inflation rates in several countries, including IndonesiaJakarta (ANTARA) - President Joko Widodo, in his 2023 State Budget Speech, affirmed that aggressive monetary tightening in several countries had rattled financial markets in many developing countries.
“(This) Tightening has caused shocks to financial markets in many developing countries. Consequently, the exchange rates of most developing countries have weakened," the president noted in the state budget speech on the 2023 Financial Note and Draft State Budget at the Parliamentary Complex, here, Tuesday.
Jokowi remarked that aggressive tightening of the monetary policy by various central banks was one of the dynamics of the global economy that impacted the preparation of the 2023 state budget planning. Meanwhile, other factors included a slowdown in the world economy that affects the pace of domestic economic growth in the short term and geopolitical conflicts as well as the war in Ukraine that had led to an escalation in supply disruptions.
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"Supply disruptions have triggered spikes in the global commodity prices and pushed up inflation rates in several countries, including Indonesia," he remarked.
In the wake of these various pressures, Jokowi said that the International Monetary Fund (IMF) had projected a significant slowdown in the global economic growth, from 6.1 percent in 2021 to 3.2 percent in 2022 and 2.9 percent in 2023.
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Furthermore, he revealed that Indonesia is targeting an economic growth of 5.3 percent (year on year/yoy) in the 2023 state budget.
The 2023 economic growth target of 5.3 percent is higher than the government's targeted 5.2 percent in the 2022 State Budget. Indonesia's gross domestic product (GDP) growth target also indicated that economic recovery will continue after the country’s economy grew 3.69 percent in 2021 following the impact of the COVID-19 pandemic.
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Reporter: Aria Cindyara
Editor: Fardah Assegaf
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