Indonesia needs to be grateful when many other regions are in a slump. This is because national economic growth is still the highest among other G20 countries.
This was stated by Jokowi when giving a briefing at the UOB Economic Outlook 2023 which was broadcast online, Thursday (29/9/2022). He said that the performance of the national economy is very good
“Try to look for G20 countries that grow above 5%, we are the highest, you know in the G20,” said Jokowi.
Jokowi himself predicts that Indonesia will not fall into a recession. Economic growth in the third quarter – of 2022 will even be higher than in the previous two quarters.
“I estimate that the economy will grow in the third quarter by 5.4 – 6%,” said Jokowi.
This was driven by several encouraging realizations of economic indicators in recent times. Among other things, the consumer confidence index shows optimism.
Banks also disburse credit with a message, which is 10.7% which describes a thriving economy. Exports were even extraordinary with the highest realization in history and pushed the trade balance to a surplus of US$ 5.7 billion.
“The trade balance is a surplus for 28 consecutive months,” he said.
The industrial activity also continues to accelerate, as can be seen from the manufacturing PMI index above 51. “So I think it will grow above the second quarter,” said Jokowi.
Furthermore, Indonesia’s inflation rate is also the lowest among other G20 countries. Head of the Central Statistics Agency (BPS) Margo Yuwono said that although Indonesia’s inflation reached a record high in more than six years, it was relatively lower than other G-20 countries.
“Indonesia’s inflation is relatively low compared to several other G20 countries,” said Margo Yuwono, in a press conference, Monday (1/8/2022).
Margo added that inflation in Indonesia and the G-20 countries soared after the Russia-Ukraine war soared the prices of food and energy commodities. Italy’s annual inflation in July this year broke 7.9% while Germany’s 7.5% and France’s 6.1%.
The median inflation rate for the G-20 countries in June 2022 was 7.79%, while Indonesia’s inflation for that month reached 4.35%. Inflation trends in the G-20 countries also have quite large differences.
G-20 members from the Asian region tend to record low inflation. On the other hand, a significant jump occurred in the G-20 members in Europe and America.
Saudi Arabia’s inflation in June only reached 2.3% while Japan’s was 2.4%, China’s 2.5%, and Indonesia’s 4.35%. High inflation only occurred in South Korea (6%) and India (7.01%).