We need to be vigilant against the five issues on the global economic prospect
Jakarta (ANTARA) - Indonesia must remain alert against five potential global risks that could affect national economic growth and recovery in 2023, according to Bank Indonesia (BI) Governor Perry Warjiyo.

"We need to be vigilant against the five issues on the global economic prospect," he said during the 2022 Bank Indonesia Annual Meeting here on Wednesday.

The first risk will be the slow growth trend and the increasing recession risk in the United States and Europe, he informed. The second risk will be high inflation due to surging food and energy prices, he said.

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The third risk will be the high interest rate, including the Federal Funds Rate, which could reach 5 percent and remain high next year, he added.

According to Warjiyo, the fourth risk will be the strengthening of the US dollar, which could lead to a depreciation in other currencies, including the Indonesian rupiah.

The fifth risk will be fund withdrawals by global investors seeking to redirect their assets to liquid assets due to high economic risk, he said.

The governor underlined that bolstering synergy and policy coordination between the government, BI, and the Financial System Stability Committee (KSSK) will be essential for addressing the five risks.

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Synergy between stakeholders will help Indonesia survive the economic risks and ensure economic resilience in 2023 and 2024, he added.

Meanwhile, he forecast that Indonesia's economy will remain strong and record a growth of 4.5 to 5.3 percent in 2023 and a consumer price index (CPI) inflation rate of 3 plus/minus 1 percent.

The governor further said that external stability will be maintained, with ongoing transactions projected to be in the range of a 0.4-percent surplus to a 0.4-percent deficit of the 2023 GDP.

"Synergy and innovation are the keys to national economic resilience and recovery as has been proven during the (COVID-19) pandemic," Warjiyo remarked.

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Translator: Astrid FH, Nabil Ihsan
Editor: Fardah Assegaf
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