BI prescribes caution, optimism in face of global economic disruption

BI prescribes caution, optimism in face of global economic disruption

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Jakarta (ANTARA) – Indonesia must remain cautious, but optimistic in confronting future global economic disruption, senior deputy governor of Bank Indonesia (BI), Destry Damayanti, has said.

“We should be wary since disruption, volatility, and pressure that occur in the global economy will at least affect Indonesia’s economy,” she noted during the online launch of the Financial Stability Study Book No.39 September 2022 on Friday.

Despite this, Indonesia must remain optimistic since it has varying and solid economic supporting power, she emphasized.

Moreover, Indonesia has a relatively strong domestic economy supported by people’s consumption and other extraordinary economic potentials.

Thus far, Indonesia has remained in a good position, with the national economy recording above five percent growth in the second quarter of 2022.

In addition, Indonesia’s economy is forecast to grow between 4.5 percent to 5.3 percent for the rest of this year.

The economic growth in the second quarter of 2022 was greatly supported by consumption, investment, and exports, which supported economic recovery as a whole.

While Indonesia also experienced a rise in inflation like other countries, its domestic inflation in September 2022 was still within the tolerable threshold, namely, at 5.95 percent year-on-year (yoy), Damayanti noted.

“One of the biggest contributors to inflation was inflation in the food sector or volatile food which, within the last two months, has started to show a sign of decline,” she said.

To this end, she emphasized policy synergy in handling economic stability and encouraging economic recovery, particularly to handle inflation.

To tackle inflation, the government has formed the Central Inflation Handling Team (TPIP) and Regional Inflation Handling Team (TPID).

It has also initiated the Food Inflation Handling National Movement (GNPIP) in regions within the past two months, which has helped reduce food inflation gradually. 

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