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BI Projects 6.2% Economic Growth by 2022

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Editor

28 March 2018 17:54 WIB

Governor of Bank Indonesia Agus Martowardojo. REUTERS/Darren Whiteside

TEMPO.CO, Jakarta - Bank Indonesia (BI) governor Agus Martowardojo projects Indonesia's economy to grow between 5.8 and 6.2 perceent in 2022.

"With an inflation rate that is expected to remain controlled within the range of 3 percent, plus-minus 1 percent," Agus said when attending the launch of the Indonesian Economy report book at BI's building on Wednesday, March 28.

Agus also projected a bank credit growth of 10-12 percent and a third-party fund growth of 9-11 percent.

"The transaction deficit is expected to increase but still below three percent of the GDP, which is about 2 to 2.5 percent," he said.

Nevertheless, Agus said that Indonesia's economy would still face challenges; the most recent being the increase in trade protectionism. That, he said, may disrupt the prospects for a sustainable global economic recovery and world trade. 

Read: BI Prohibits Bitcoin Transactions

"It can have a negative impact on the Indonesian economy," he said.

Luis Enrique Breuer, Head of the International Monetary Fund's (IMF) Asia and Pacific Division chief, shares Agus' sentiments. Some time ago, he said that Indonesia was able to achieve an average economic growth of up to 6.5 percent in a few years due to its high number of young citizens who would enter the job market each year.

These young men and women's work, he said, would eventually create economic growth potentials. What the government needs to do, Luis added, was to create jobs.

"That way the country can benefit from demographic dividends."

ADAM PRIREZA

 

 

 


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