"Inflation, which is still very high now, will return to the target of three percent, give or take one percent, in 2023 and 2.5 percent, give or take one percent in 2024," Warjiyo noted at the 2022 Bank Indonesia Annual Meeting here on Wednesday.
Warjiyo said the Consumer Price Index (CPI) inflation was estimated to be at three percent, give or take one percent, with core inflation to bounce back earlier in the first half of 2023.
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He is optimistic of this target being achieved, as imported inflation remains under control, with a stable rupiah exchange rate and a front-loaded, pre-emptive, and forward-looking monetary policy response.
BI's commitment to pursuing the interest rate policy response through calibration in a measured, careful, and transparent manner will also ensure the achievement of the core inflation target.
The magnitude and timing of the interest rate policy response are based on developments in inflation expectations and core inflation as compared to initial estimates and targets to be achieved.
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In addition, close policy coordination with the central and regional governments, through the inflation control teams and the national food Inflation control initiative, also contributed to the inflation rate.
Warjiyo reminded that collaboration and innovation were the keys to the prospects for Indonesia's economic performance in 2023 and 2024 that would sustain economic resilience and revival.
"It needs to be improved to face global turmoil and revival next year," he concluded.
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