Bank Indonesia (BI) is optimistic that Indonesia's economy will remain resilient in 2023 despite global uncertainty and will continue the growth it experienced in 2022. "Indonesia grew in 2022, and even in the second half of 2022, Indonesia's growth was higher than in the first half, which was different from other countries," said Firman Mochtar, Executive Director of BI's Monetary Economic Policy Department.
Firman stated that there are many challenges, including the ongoing conflict between Russia and Ukraine, high commodity prices, and volatility in the global financial markets. However, despite these challenges, Indonesia's economy is still growing faster than other countries. He added that the solid growth is supported by stability in various areas, including the well-maintained exchange rate of the rupiah, controlled inflation, increased credit growth, and a healthy financial system.
Banking liquidity and the economy are sufficient to encourage further credit or financing growth. In February 2023, the Liquid Asset Ratio (LAR) to Third-Party Funds (TPF) was high at 29.09%. Credit growth is estimated to increase by 10-12% in 2023. Indonesia's strong economic growth this year is also driven by increased domestic and export demand. Household consumption is expected to be stronger due to increased mobility throughout the region, retail sales, and improved consumer confidence. The prospect of increased domestic demand is also influenced by the continuing effects of export improvements. The export of goods and services is expected to be higher than previously projected due to the improvement in the global economic outlook. Developments until February 2023 show that Indonesia's non-oil and gas exports are growing rapidly, including an increase in coal, metal ore, and CPO exports to China.
