2023 was called the darkest year, the perfect storm, but so far, we have been able to survive and continue to grow positively.
Jakarta (ANTARA) - The Indonesian economy is continuing to grow positively amid the turmoil caused by global uncertainty, according to economist and research director of the Center of Reform on Economics (CORE) Indonesia, Piter Abdullah.

"This is shown by positive growth in 2022 and 2023. 2023 was called the darkest year, the perfect storm, but so far, we have been able to survive and continue to grow positively," he told ANTARA in Jakarta on Thursday.

This can be attributed to Indonesia's economic fundamentals, which have remained solid in supporting economic growth. The characteristics of the Indonesian economy, which relies more on domestic demand, provide scope for continued positive growth, he argued.

"Global uncertainty has been going on for several years and will continue for the next few years. Indonesia is believed to be able to survive and continue to grow positively," he said.

The Indonesian economy as a whole grew solidly at 5.31 percent in 2022, higher than the level of 3.70 percent in 2021.

Statistics Indonesia (BPS) reported that in the third quarter of 2023, the national economy grew by 4.94 percent year on year (yoy). The figure reflected a slight slowdown compared to the previous quarter's growth of 5.17 percent (yoy), it added.

Meanwhile, the Consumer Price Index (CPI) inflation in October 2023 was also low at 2.56 percent yoy, and remained controlled within the target range.

Then, Indonesia's trade balance in October recorded a surplus of 3.48 billion US dollars. Notably, the nation has recorded a trade surplus for 42 consecutive months since May 2020.

Indonesia's trade balance surplus in October 2023 was higher compared to the previous month's level of US$3.41 billion. This development further supported the external resilience of the Indonesian economy.

Abdullah projected that the Indonesian economy will continue to grow positively in the range of five percent, with a relatively controlled inflation rate of three to four percent, with the rupiah exchange rate moving in the Rp15 thousand to Rp16 thousand per US dollar range.

"We can be sure that in 2024, the Indonesian economy will still grow positively even though there is a possibility of slowing," he said.

Earlier, during a working meeting with Commission XI of the DPR in Jakarta on November 13, Bank Indonesia (BI) Governor Perry Warjiyo said the central bank forecast national economic growth of 5.01 percent for this year in the 2023 BI Annual Budget (ATBI).

According to Warjiyo, in 2023, Indonesia's economy will grow well and be strong, and one of the reasons for this will be the synergy and coordination between government and BI policies in maintaining stability and growth amid the negative impacts of global turmoil.

The economic growth of five percent is expected to continue next year, in line with domestic demand, which is projected to be driven by increases in the salaries of state civil servants (ASN), elections, and construction projects at Indonesia's capital city Nusantara.

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Translator: Martha Herlinawati Simanjuntak, Cindy Frishanti Oc
Editor: Rahmad Nasution
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