Economy Still Recovering in 2022, Says Bank Indonesia Governor

TEMPO.CO, Jakarta - Bank Indonesia governor Perry Warjiyo in a media forum group discussion  on Wednesday revealed that Indonesia’s economy in 2022 will likely need more time to recover after the economy experienced a huge blow from the 2020 Covid-19 arrival. 

“Based on BI’s calculation, we have not returned to normal, not recovered entirely,” said Perry on February 23, Bisnis.com reported. 

His statement is based on the bank’s calculation from the inflation side and economic growth with the former’s consumer price index remaining below 2 percent, still a distinct gap to the 2-4 percent goal the bank set earlier this year. 

As to Indonesia’s economic growth, Perry said the normal growth is within an average of 5.1 - 5.2 percent but is currently actually logging 3.7 percent. 

“We will begin to enter normality next year, which is measured from economic growth,” said the governor. 

He said that aggregate demand is currently increasing despite still being below the national output capacity, or a negative output gap.

However, Bank Indonesia is optimistic that Indonesia's economic growth this year will reach between 4.7 to 5.5 percent. He ensured that the impact of global risks on Indonesia's financial and external system stability remained  limited.

Read: G20; Jokowi Says Economy Still Shaken, Warns Against Rivalry

BISNIS