"Indonesia grew (positively) in 2022. Even in the second half of 2022, the growth was higher than in the first half. (This situation) is different from other countries," Executive Director of BI's Monetary Economic Policy Department Firman Mochtar stated in a webinar on Asian Development Outlook April 2023 here, Tuesday.
Indonesia's economy in 2022 grew by 5.31 percent, higher than its achievements in 2021 of 3.70 percent.
Mochtar pointed out that the world had faced numerous challenges, including the ongoing conflict between Russia and Ukraine, high commodity prices, and volatility in global finance.
However, amid these challenges, Indonesia's economy is still growing higher than other countries, he noted.
"We believe that mostly it was triggered by a surplus in the trade balance that created better prospects and better performance for Indonesia," he noted.
Mochtar said strong economic growth was supported by stability in the rupiah exchange rate, controlled inflation, increased credit growth, and a financial system that remained healthy.
Liquidity in the banking system and the economy is adequate to encourage credit or financing increases, he remarked.
In February 2023, the ratio of Liquid Assets to Third-Party Funds (AL/DPK) was recorded as high as 29.09 percent.
Credit growth is expected to increase by 10-12 percent in 2023.
Indonesia's strong economic growth this year was also driven by increased domestic and export demand, Mochtar remarked.
He noted that household consumption is expected to strengthen further in line with increased mobility across regions, retail sales, and improving consumer confidence.
The prospect of increasing domestic demand is also influenced by the continued impact of improving exports. Moreover, exports of goods and services are projected to be higher than earlier forecast in line with the improvement in the global economic outlook.
Until February 2023, Indonesia's non-oil and gas exports grew rapidly, with the increased exports of coal, metal ore, and crude palm oil (CPO) to China.
In addition, Mochtar said the increase in business confidence as a positive impact of the opening up of China's economy will support Indonesia's economic growth.
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Translator: Martha H Simanjuntak, Sri Haryati
Editor: Azis Kurmala
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