Jakarta. Indonesia is forecast to see a robust economic growth of above 5 percent this year thanks to domestic consumption and investment, according to the country’s central bank.

Indonesia’s economy rose 5.31 percent in 2022, quite a jump from the 3.7 percent growth that the current ASEAN chair had registered in the previous year. The country’s gross domestic product (GDP) will likely expand between 4.5 percent and 5.3 percent in 2023. GDP growth is expected to accelerate to 4.7 percent and 5.5 percent in 2024, Bank Indonesia data shows. 

"Indonesia is among the best-performing economies despite the global turbulence,” Bank Indonesia Governor Perry Warjiyo said at a side event to the ASEAN Finance Ministers and Central Bank Governor Meeting (AFMGM) in Jakarta on Tuesday.

“Indonesia’s GDP growth forecasts for this year stand at around 4.5 percent and 5.3 percent. So that is about 5.1 percent economic growth,” Perry said.

Perry told the forum that the country would be able to keep inflation within its target range of 3 percent, plus or minus 1 percentage point, for 2023. The central bank reported Indonesia’s consumer price index (CPI) inflation amounted to 5.51 percent in 2022. The numbers are expected to go down to 2-4 percent this year. Indonesia’s inflation based on CPI is projected to trend around 1.5 percent and 3.5 percent in 2024; still within the government’s target of 2.5 percent, plus or minus 1 percentage point.

Indonesia posted a credit growth of 11.35 percent year-on-year (yoy) in 2022, more than double than the 5.24 percent it recorded in the previous year. Banking lending will rise between 9 and 11 percent yoy in 2023. Credit growth is projected to reach around 10 and 12 percent yoy in 2024, during which Indonesia will host its presidential election.

Satvinder Singh, the deputy secretary-general at the ASEAN Economic Community, earlier this month said he foresaw the Southeast Asian bloc’s GDP to rise 4.6 percent in 2023. The region is expected to witness a 4.9 percent growth next year.

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