Fajarasia.id – Economic Coordination Minister Airlangga Hartart said the country’s economic recovery continues. According to him, the fundamentals of the Indonesian economy remain strong.
The government expects economic growth to reach 5.3% year-on-year. “Consumption, investment and exports drive the country’s economy,” said the Golkar leader.
Piter Abdullah Redjalam, Executive Director of the Segara Institute, believes this figure is realistic even given the uncertainty and looming global crisis. According to Peter, the difference between the Indonesian economy and other economies is the support for domestic consumption. “I think it’s realistic, because the situation in Indonesia is different from the situation in the world,” he said.
Pitter said he expects the Indonesian economy to grow by 4.8-5.3%. So, in his opinion, 5.3 is an optimistic number and still realistic. “We expect Indonesia’s economy to grow between 4.8% and 5.3% in 2023. So if the government is predicting 5.3%, it’s an optimistic figure, but still realistic,” he said. said.
On the expenditure side, private household consumption continues to be the largest contributor to the GDP component, according to the Central Bureau of Statistics (BPS). Domestic consumption contributed he 50.38% to GDP in the third quarter of 2022. From 2014 to 2018, the average contribution of household consumption to GDP was 56.15%. The average contribution of household consumption to GDP from 2019 to 2021 is 56.2%. Specifically, it was 56.63% in 2019, rose to 57.65% in 2020, and dropped to 54.42% in 2021.
challenge
Meanwhile, INDEF economist Agus Herta Smalto said the three sectors expected to support economic growth – exports, consumption and investment – each have their own challenges.
“The biggest challenge is in the export sector. With the global economy slowing, boosting exports does not appear to be an easy task.With global trade performance still not fully recovering, the government has decided to increase Indonesia’s exports. We need to be able to choose economic sectors and commodities that can boost ,” Agus Herta said on Monday (30/30/2001).
The challenge in public consumption is to maintain people’s purchasing power. “Some time ago we were hit by a wave of layoffs and an increase in some food products. With more than 50% of GDP driven by consumption, our economic structure still relies heavily on this consumption side. We have to maintain people’s optimism so that the scar effect doesn’t hold back consumption,” said Agus Herta, who is also a lecturer in economics at Merck Buana University.
In the investment sector, investors will be very cautious in choosing targets as the global economy slows. Investors, especially global investors, tend to take a wait-and-see approach to remain cautious. “Several global sovereign wealth funds continue to apply high standard investment requirements to the countries in which they invest. Herta said.
Sovereign Wealth Funds (SWFs) have stabilizing features and their presence is essential for investment and savings
In general, INDEF predicts that Indonesia’s economic growth rate will reach 4.8% in 2023. This range is about the same as many other financial institutions in the world. Indonesia’s economic conditions are generally very strong compared to other countries, although below the government’s forecast.****
