Jakarta, 23 October 2023 – Bank Indonesia (BI) Governor Perry Warjiyo estimated that Indonesia’s economic growth will stay on track and resistant to international propagation. During the third quarter of 2023, the economic growth was supported by private consumption, including the youths.
“In line with the increase in consumption of the services sector,” Perry said in a live stream on Bank Indonesia’s official YouTube on Thursday, Oct. 19.
Additionally, Perry said, the investment growth is on the positive following the finalization of the National Strategic Projects (PSN). Meanwhile, there is a decrease in export growth, with demand slowing down from Indonesia’s main trade partner China.
“On the other hand, services export stays on the rise parallel to the increase of foreign tourists in Indonesia,” Perry said.
Spatial-wise, Perry added, the highest economic growth occurred in North Sulawesi, Gorontalo, Maluku, North Maluku, Papua, West Papua, Kalimantan, and Java. With this development, the economic growth ranges from 4.5 to 5.3 percent in 2023 and is expected to rise in 2024.
According to Perry, the track to economic recovery in 2024 is bolstered by the domestic demand based on the increase in Civil State Apparatus’ wages, general elections, and the development of IKN. To support the growth, especially in regard to demand, BI strives to increase the stimulus for macroprudential policies.
“And the acceleration of digital payment system with the tightening of governmental fiscal policies,” Perry added.
Unlike Indonesia, Perry informed, the global economic state is slowing down with the rise in uncertainty, estimated to decrease from 2.9 percent in 2023 to 2.8 percent in 2024.