Bank Indonesia Forecasts 5.5 Percent GDP Growth in 2022

TEMPO.CO, Jakarta - Bank Indonesia Governor Perry Warjiyo in the institution’s annual report on Wednesday said Indonesia’s GDP growth in 2022 is projected to reach between 4.7 - 5.5 percent with this year reaching an expected 4.0 percent growth. 

He revealed that the economic projection is heavily based on the ongoing global economic growth “Which makes export performance remain strong and increase domestic demand from consumption and investment growth.”

Warjiyo, in the virtual annual report, said vaccinations also contribute to the economic projection. Moreover, he said the opening of economic sectors and stimulus in 2021 is an asset for the country’s improved economic recovery in 2022. 

President Joko “Jokowi” Widodo present in the meeting conveyed his appreciation for the synergy and intense communication among state authorities that comprise of Bank Indonesia, the Financial Services Authority (OJK), LPS, and the Finance Ministry which is key in managing the effects of the Covid-19 pandemic towards national economy in 2021. 

The President urged for the development of a green and digitized economy, especially for MSMEs.

The current account deficit is low, in the range of 1.1-1.9 percent in 2022. Financial system stability is maintained, capital adequacy is high, and liquidity is abundant. Third Party Funds and loans will grow 7.0-9.0 percent and 6.0-8.0 percent in 2022.

Read: Bank Indonesia Governor Outlines 5 Global Economic Challenges Next Year

MUHAMMAD HENDARTYO