…the Indonesian economy remains resilient, supported by strong domestic demand.
Jakarta (ANTARA) - The Indonesian economy is continuing to show resilient performance amidst global uncertainty and economic slowdown, according to Minister of Finance, Sri Mulyani Indrawati.

"In the midst of global uncertainty and slowdown, the Indonesian economy remains resilient, supported by strong domestic demand," Indrawati said at a Financial System Stability Committee (KSSK) press conference in Jakarta on Tuesday.

Up till the third quarter of 2023, the national economy recorded a growth of 5.05 percent (year to date), mainly supported by consumption and investment.

The minister highlighted that consumption activity is still strong, supported by controlled inflation and a declining unemployment rate, with the state revenue and expenditure budget (APBN) serving as shock absorbers and helping maintain people's purchasing power.

Investment has also shown a strengthening trend since the first quarter of 2023. Strengthening investment is in line with the accelerated implementation of National Strategic Projects (PSN).

Entering the fourth quarter of 2023, Indrawati continued, signs of resilience in domestic economy activity continued, which were reflected in the consistently expansive manufacturing PMI (purchasing managers' index) figures and continued trade balance surplus.

There were also several early indicators that were still strong, such as the real sales index and consumer confidence.

Given those developments, Indrawati projected economic growth of around 5.0 percent for 2023, a decline in the unemployment rate to 5.32 percent, and the poverty rate to 9.36 percent.

The minister said she is optimistic that economic growth will reach 5.2 percent in 2024.

The optimism stems from the general elections, which usually have a positive impact on consumption activities, both in terms of government and public consumption.

The government is also confident that investment performance will continue to be strong, considering the progress of PSNs, which are in the completion stage.

During the press conference on Tuesday, Indrawati said that the KSSK continues to be committed to strengthening coordination and synergy for maintaining the Indonesian economy.

This is being done by increasing awareness about the risk of global economic slowdown and uncertainty this year, with the World Bank estimating that the global economy will slide from 3 percent in 2022 to 2.5 percent in 2023 and weaken further to 2.4 percent in 2024.

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Translator: Imamatul Silfia, Cindy Frishanti Octavia
Editor: Azis Kurmala
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