The high economic growth is encouraged by the rising domestic demand, especially household consumption, and high export performanceJakarta (ANTARA) - Bank Indonesia (BI) projects Indonesia's economic growth in the third quarter of 2022 to reach 5.5 percent (yoy) or higher than that in the 2022 second quarter along with continuing improvement in the domestic economy.
To this end, Indonesia's economy is estimated to experience an upward trend within the central bank's projection of between 4.5 percent to 5.3 percent (yoy), BI's Governor, Perry Warjiyo, noted during the 2022 BI RDG Results Announcement.
"Various latest indicators in July 2022 and BI's last survey results, such as consumer's trust, retail sale, and Manufacture's Purchasing Managers' Index (PMI), had continued to improve," he remarked here, Tuesday.
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Externally, the export performance until July 2022 remains positive amid the stagnation of the global economy that comes with the increasing risk of stagflation and persistently high financial market uncertainty.
For this year's second quarter, the realization of gross domestic product (GDP) significantly grew 5.44 percent (yoy), or far higher than the estimate and achievement in the previous quarter, with 5.01 percent (yoy).
"The high economic growth is encouraged by the rising domestic demand, especially household consumption, and high export performance," he explained.
The continuing improvement in the national economy is also reflected in the growth of majority of the industries, especially processing, transportation and warehouse, as well as trade.
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Meanwhile, spatially, economic improvement is supported by all regions, especially Java, Sumatra, and Sulawesi-Maluku-Papua.
On the occasion, Warjiyo also noted that during the Governor Council Meeting (RDG), BI had decided to raise the BI-7 Day Reverse Repo Rate (BI7DRR), from 3.5 percent to 3.75 percent.
The deposit facility interest rate as well as lending facility interest rate are also raised to three percent and 4.5 percent respectively.
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Translator: Agatha Olivia V, Fadhli Ruhman
Editor: Fardah Assegaf
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