Jakarta (ANTARA) - Deputy Governor of Bank Indonesia (BI) Aida S. Budiman stated that Indonesia has been able to maintain the momentum of economic recovery amid global uncertainty and economic turmoil.

"Amid those various challenges, Indonesia is still able to maintain good economic recovery," she remarked at the 7th Indonesia Risk Management Outlook 2024 event themed "Beyond Uncertainty and Opportunity: Technology and Leadership as Key Elements" monitored online here on Friday.

Budiman drew attention to several main challenges faced by the global economy, such as economic growth that is projected to slow down, escalation of geopolitical tensions, and interest rate policies in developed countries, including the federal funds rate (FFR), which has remained high for a long time.

She noted that Indonesia's gross domestic product (GDP) in the second quarter of 2023 grew 5.17 percent, and this achievement marked economic growth above five percent for seven consecutive quarters.

The economic growth was driven primarily by domestic demand and consumer confidence that remained high.

Meanwhile, the latest economic indicators also continue to show good development. The strong resilience of the Indonesian economy is also supported by the economic stability that remained maintained.

In September 2023, inflation was recorded at 2.28 percent, which is below the target of three percent, give or take one percent.

The stability of the financial system was also maintained, with credit growth of 8.96 percent in September 2023, and banking liquidity conditions are good, with the ratio of liquid assets to third-party funds at 25.83 percent as of September 2023.

The quality of credits has also been maintained, as reflected by the Non-Performing Loan (NPL), which stood at 2.5 percent (gross) and 0.79 percent (net), while the capital adequacy ratio was also at a high level of 27.62 percent.

In addition, she noted that the performance of digital economic and financial transactions remained strong, supported by safe, smooth, and reliable payment systems.

BI still projects that Indonesia's GDP overall will grow by around 4.5 to 5.3 percent in 2023 and will increase in 2024. Meanwhile, inflation is projected to remain at the target of three percent, give or take one percent in 2023 and 2.5 percent, give or take one percent in 2024.

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Translator: Martha Herlinawati, Raka Adji
Editor: Azis Kurmala
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