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The Economy is Projected to Grow +5.00% to +5.30% in 2023

APINDO projects that Indonesia's economic growth in 2022 will range from the lowest estimate of +5.30% (yoy) to the highest prediction of +5.40% (yoy). This projection is based on the growth results (yoy) obtained in Q1 (5.01%), Q2 (5.44%) and Q3 of 5.72% which has shown an upward trend since early 2022 and has grown above various expectations. The growth results in these three quarters provide a predictive pattern for growth projections in Q4 2022 (yoy) and for 2022 as a whole (yoy).

 

For 2023 APINDO estimates that overall economic growth will be in the range of +5.00% to +5.30% (yoy) with inflation between +3.60% to +5.00% and an average the Rupiah exchange rate against the USD is in the range of 15,200 – 15,800 per USD dollar. The projected growth range is based on consideration of 3 (three) main things: first, the economic recovery is going quite well in 2022, including as a result of a number of social protection and national economic recovery (PEN) programs; second, the right synergy of fiscal and monetary policies to reduce the various impacts of global inflation and the sluggish world economy. Third, unfortunately there is a lack of consistency in the implementation of the structural reform agenda which has the potential to lead to non-inclusive economic growth.

 

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