Bank Indonesia Projects Lower Than 4 Percent Inflation in 2023

TEMPO.CO, Jakarta - Bank Indonesia (BI) on Thursday predicts that inflation levels will come close to their initial 3 percent prognosis (+- 1 percent) in 2023, as the Indonesian central bank projects below 4 percent inflation during next year’s third quarter. 

"We estimate that in the third quarter of next year it will be around 3.6 percent and ce3 percent in the fourth quarter," said the Governor of Bank Indonesia Perry Warjiyo when met on the sidelines of the IMF-WB meeting in Washington D.C., on Thursday, October 13, Antaranews reported.

Previously, BI estimated that the inflation rate until the end of 2022 would increase above 6 percent year on year. This spike in inflation is the impact of rising fuel prices (BBM) and transportation fares. However, it is claimed that the increase is still below the global average of 9 percent inflation. 

Global inflation spiked due to geopolitical conflicts in Europe which resulted in rising energy and food prices.

According to Perry, the inflation target can be achieved through sustainable synergy with the government that has been established so far. He was also grateful as Indonesia's fiscal condition is still relatively strong. 

"We are grateful that in Indonesia the government's fiscal policy and monetary policy are so strong. BI remains independent but independent in the spirit of interdependence togetherness,” the Bank Indonesia governor added. 

ANTARA

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