“It (the global economic pressure) had started to decline in the fourth quarter (of 2022). We just received information this morning. Hence, we have to be optimistic but still have to stay vigilant," he said after attending the Mandiri Investment Forum, here, Wednesday.
According to the World Economic Outlook (WEO) Update edition released by the International Monetary Fund (IMF), the global economic growth projection for 2023 increased to 2.9 percent in January 2023.
Earlier, it was estimated in October 2022 that the global economic growth for 2023 would only reach 2.7 percent.
The projection was raised, considering the reopening of economic activities in China after extended restrictions due to the zero COVID-19 policy.
Although the global economic pressure is declining, global recession can still potentially occur, so all countries are still vigilant, the president emphasized.
"Global pressure from the economic sector has eased, but that does not mean that a recession will not happen. Perhaps, (the recession has) not yet (occurred)," he stressed.
Meanwhile, at the investment forum, the president stated that several of the economic risks, despite once being feared, did not happen.
“What (economic risks) we used to imagine (and) feared, it turned out that a lot of them did not happen. We should be grateful," Jokowi remarked.
Hence, he urged all parties to be optimistic in 2023 since Indonesia's economic growth in 2022 had been estimated at 5.2-5.3 percent.
Meanwhile, the country's inflation was maintained at 5.28 percent year-on-year in January 2023, according to Statistics Indonesia (BPS).
Indonesia’s Purchasing Manager Index (PMI) was also reported to be quite expansive, at 50.9.
"If you see these (data), (but) you are (still) not optimistic, you are mistaken. However, please remain careful and alert," the president noted.
In addition, investment realization in Indonesia in 2022 had reached Rp1,207 trillion (about US$80.63 million), surpassing the government’s target of Rp1,200 trillion (about US$80.19 million).
"I am happy that 53 percent (of the investment figure) had been (realized in areas) outside Java region, while 47 percent are (realized) in Java region. It means that we are no longer Java-centric (in carrying out development projects)," Jokowi stated.
As stated in the 2023 State Budget, the government targets to record an economic growth of 5.3 percent in 2023.
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