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Economy predicted to grow 4.9 percent in Q1 of 2023

Tempo - February 8, 2023

Antara, Jakarta – The Institute For Development of Economics and Finance (Indef) projects that Indonesia's economy will grow 4.9 percent in the first quarter of 2023 compared to the same period in 2022. This estimation is lower than the actual economic growth in the fourth quarter of 2022 which grew by 5.01 percent (yoy).

"That is if it is realistic enough by looking at the current situation," said Indef Executive Director Tauhid Ahmad in a virtual press conference followed in Jakarta, Tuesday, February 7.

Government consumption is also considered to be relatively slow because the distribution of social assistance (bansos) cannot be carried out at the beginning of the year due to administrative problems.

Recently, Indonesia has also been faced with soaring prices of rice, making it hard for consumers to obtain. Export performance has also seen a decline in early January 2023, which was observed since November 2022. Thus, these conditions illustrate that the impact of global challenges will be even more severe this year.

Tauhid said this development is a signal that the government must improve a number of things, including reducing inflation which erodes purchasing power, maintaining public consumption, and improving government stimulus to make it even better.

"Pressure in several sectors, especially industry, has also begun to occur extraordinarily and will be felt in 2023," he said.

Source: https://en.tempo.co/read/1688914/economy-predicted-to-grow-4-9-percent-in-q1-of-202