Sri Mulyani Forecasts 2023 Economic Growth to Exceed 5%

TEMPO.CO, Jakarta - Indonesian Finance Minister Sri Mulyani Indrawati estimated that the country’s economic growth in 2023 will remain strong and even has the opportunity to grow above 5 percent. For the first quarter of 2023, she explained, the figure reached 5.03 percent, better than the fourth quarter of 2022 which was 5.01 percent.

“It’s triggered by the country's continued strong exports driven by the oil and gas sector, with the main destinations of China, the United States, and Japan. It’s also supported by high private consumption and non-building investment,” Sri explained in a press conference after the Financial System Stability Committee (KSSK) meeting at LPS Learning Center, Pacific Century Place Building, West Jakarta on Monday, May 8, 2023.

Sri believed that exports and non-construction investments will remain good as they are supported by rising private consumption in line with people’s mobility that has returned to normal post-COVID-19 pandemic, as well as consumer confidence and strengthening purchasing power.

With these developments, Sri asserted that Indonesia's economic development will be biased upwards in the range of 4.5-5.3 percent and will be followed by a decline in domestic inflation. 

The KSSK also predicted that this year’s inflation will continue to plunge. The inflation reached 4.33 percent in April 2023 from 5.51 percent at the end of 2022.

“Inflationary pressure continues to decrease, consumer price index or CPI fell 4.33 percent year on year (YoY) in April 2023,” Sri Mulyani said.

Meanwhile, core inflation continued to slow at 2.83% yoy, which was affected by falling inflation expectations and imported inflation, as well as adequate aggregate supply in response to increased demand for goods and services, especially during Ramadan. Meanwhile, volatile good inflation remained under control at 3.73 percent yoy.

“This is the impact of Bank Indonesia's preemptive and forward-looking monetary policies, as well as close synergy between the central and regional governments through the intensive National Movement for Food Inflation Control (GNPIP) in various regions,” Sri Mulyani concluded.

MOH. KHORY ALFARIZI

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