BI: Economic Growth Will Reach 5.5% in Quarter III/2022

Indonesian Traditional Market

Recovery after the Covid-19 pandemic in Indonesia is going very well. Therefore, Bank Indonesia (BI) estimates that Indonesia’s economic growth will reach above 5.5 percent in the third quarter of 2022.

This was conveyed by the Governor of Bank Indonesia (BI) Perry Warjiyo in a press conference on the Results of the Periodic Meeting of the Financial System Stability Committee (KSSK) IV 2022, Thursday (3/11/2022).

“We are optimistic that economic growth will be higher than 5.5 percent, our estimates from various indicators, retail sales, consumer confidence, credit, as well as the current account, and good exports, all of which support us to be optimistic,” Perry said.

On the same occasion, Minister of Finance Sri Mulyani Indrawati also said that the improvement in the domestic economy continued, which was supported by the private sector which remained strong amid rising inflation.

In addition, domestic economic growth was also supported by increased non-construction investment, as well as maintained export performance.

BI recorded retail sales performance, which was reflected in the Real Sales Index (IPR) growing by 5.5 percent on an annual basis in September 2022.

The Consumer Confidence Index (IKK) still shows expansive consumer perceptions at the level of 117.2 in September 2022, although it is down from its position in June 2022 of 128.2.

On the same occasion, Minister of Finance Sri Mulyani said to maintain the momentum of economic recovery, the government is committed to maintaining a vigilant, anticipatory, and responsive implementation of the 2022 State Budget to anticipate increasing uncertainty through the implementation of automatic adjustments.

“The National Economic Recovery Program (PEN) is still being pushed to be responsive in line with the developments of Covid-19 and the trend of economic recovery,” She said.

She added that the government is also strengthening support for MSMEs, including through the KUR and guarantee programs.

In addition, the government continues to strive to maintain the supply of coal for domestic needs to maintain energy security and provides support for labor-intensive projects, tourism, and food security, as well as providing tax incentives for Article 22 Import Income Tax.