Indonesia Predicts 5.5% Economic Growth in Q3

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani said that Indonesia had succeeded in maintaining the momentum of economic recovery from the Covid-19 pandemic. She predicted that in the third quarter of 2022, Indonesia's economic growth will reach 5.5 percent.

"In the third quarter, our economy will still grow very strongly above 5.5 percent. This is an estimate from the finance ministry," she said in a press conference for the State Budget on Friday, October 21.

Sri said that in the short term, the Indonesian economy is still healthy and strong. This, she said, is seen in the several indicators including mobility, retail sales index, and spending index, which are all still positive and expansive. The same goes with the supply side, which is strengthening, she said.

"This means that for 13 consecutive months, Indonesia's Prompt Manufacturing Index (PMI) is still in a state of expansion," he said.

Indonesia 'Resilient' against Global Economic Downturn

Amidst a global economic downturn, Sri Mulyani said Indonesia's condition is relatively resilient. Moreover, the IMF has projected Indonesia's 2022 economic growth rate at 5.3 percent. Next year, the pace is expected to reach 5.0 percent.

This, she said, is attributable to Indonesia's external sector performance. Referring to the trade balance, Indonesia posted a surplus of US$4.9 trillion in September, a surplus for the 29th consecutive month. This year so far, the accumulated trade surplus stood at US$39.9 trillion, providing a cushion from global economic shocks.

Despite appearing quite robust and healthy, Sri said the Indonesian economy must remain vigilant in facing challenges in 2023. The waves of global economic declines and the interest rate hike trend will certainly have an impact on the indicators and factors of Indonesia's economic growth. 

RIANI SANUSI PUTRI

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