Indonesia is entering 2023 with relatively full self-confidence, in spite of the recession and uncertainty haunting the global economy. This optimism is based on the economic resilience and performance in 2022.

The pressure on the rupiah exchange rate has been immense given the high economic temperature. Even though in the past weeks the pressure has begun to decline, it does not mean the storm has passed, as the potential for shocks that have triggered the weakening of the rupiah still remain.