TEMPO.CO, Jakarta - Bank Indonesia (BI) governor Perry Warjiyo predicted Indonesia's economy to improve next year, heading towards recovery. He projected a growth rate of up to 5.5 percent this year.

"Hopefully the economy will grow 4.7 to 5.5 percent in 2022, from this year's 3.2 to 4.0 percent," Perry said in a discussion on Wednesday, December 1.

He added that the growth would come with increasing itu investment consumption as well as exports. Perry also estimated the inflation rate would be maintained between2.5 and 4.5 percent as targeted.

"And surely, credit growth would reach 6 to 8 percent, and digital economy and finance will continue rising rapidly, supporting our economic recovery.

Perry added that in order to achieve economic growth, the state must apply the precautionary principle through national economic policies. A synergy of policies between the government, Bank Indonesia, KSSK, and all stakeholders—including Commission XI of the House of Representatives—is also necessary.

Perry reminded that vaccine rollouts must be fast-tracked in order to reach herd immunity, which would allow economic sectors to reopen gradually, supporting state finances.

Read: Indonesia Confident of 4% Economic Growth amidst Omicron Variant Spread

Muhammad Hendartyo | Graven (Intern)