Indonesia’s economy expected to grow by 5 to 5.5 percent

Jakarta (Indonesia Window) – Considering a number of assumptions of 2022 macroeconomic indicators over structural reform policies and by taking into account the dynamics of the COVID-19 pandemic in Indonesia, the government seeks to achieve the economic growth target of 5.5 percent.

The remark was made by President Joko Widodo (locally known as Jokowi) when delivering the Government’s Statement on the Bill on the State Budget for Fiscal Year 2022 and its Financial Note in front of the Indonesian House Plenary Meeting held here, Monday (Aug. 16).

“The economic growth in 2022 is estimated to be in the range between 5 and 5.5 percent. We will try our best to reach the growth target above the upper limit, which is 5.5 percent. However, we must remain vigilant, because the development of COVID-19 is still very dynamic,” said the head of state.

“We will use all our resources, scientific analysis and expert views to keep the COVID-19 pandemic under control. Thus, economic recovery and social welfare can be maintained and continue to be accelerated and strengthened,” he continued.

Jokowi believed that the economic growth also reflects a fairly strong recovery projection, supported by investment and export development as a result of structural reforms implementation.

However, he reminded that vigilance is still necessary given that global and domestic uncertainties could risk future economic growth.

Meanwhile, inflation will be maintained at a level of 3 percent, reflecting an increase in the demand side, both due to the economic recovery and improvement in people’s purchasing power.

The rupiah (Indonesian currency) is estimated to move in the range of 14,350 rupiahs per U.S. dollar.

Meanwhile, the interest rate for 10-year Government Securities (SUN) is estimated to be around 6.82 percent. This figure reflects Indonesia’s economic fundamental and the influence of global dynamics.

“The price of Indonesian crude oil (ICP) is estimated to be around 63 U.S. dollars per barrel. The lifting of oil and gas is estimated to reach 703,000 barrels and 1,036,000 barrels of oil equivalent per day, respectively,” said the Indonesian President.

Reporting by Indonesia Window