Dealing with Headwinds

Entering the year 2023, Indonesia remains optimistic in spite of the headwind of a probable recession in one-third of the world. Our economy continues to maintain positive growth.

KOMPAS/AGUS SUSANTO

Traffic flow at the Cibitung Interchange, West Cikarang, Bekasi Regency, West Java, Monday (9/1/2023). Indonesia's economic growth during 2022 is estimated to be above 5 percent so that it will become capital for positive growth in 2023.

This optimism is based on the achievements made in 2022. Finance Minister Sri Mulyani Indrawati and Deputy Finance Minister Suahasil Nazara estimated that Indonesia achieved economic growth of above 5 percent in 2022, which would provide capital for positive growth in 2023. The budget deficit was again below 3 percent. The termination of the Public Activity Restrictions (PPKM) had also accelerated economic activities (Kompas, 9/1/2023).

For 2023, several international financial institutions have forecast that the Indonesian economy will grow by 4.7-5 percent, while Bank Indonesia (BI) has estimated general inflation at 2-4 percent.