JAKARTA. The global economic challenges are projected to subside as International Monetary Fund (IMF) revises the projection of global economic growth rate in 2023 to 2.9% from the initial 2.7%. However, on the contrary, IMF also cut off Indonesia’s economic growth rate from 5% to 4.8%.

Sri Mulyani, Minister of Finance of Indonesia, explained that the change in global economic growth projection by IMF indicates how economic difficulties, which was initially predicted to be severe, are easing up. According to her words, the Chinese government’s decision to lift the Zero COVID-19 policy has given hope for global economic situation in 2023 to improve, albeit still accompanied by setbacks. “Some setbacks will still occur, but they would not turn to recession,” she mentioned during the press conference of the Result of Periodic Meetings of Financial System Stability Committee (KSSK) I Year 2023 yesterday (31/1).

This change will affect Indonesia’s economic situation. In 2022, Indonesia’s economic growth rate was predicted to reach 5.2%-5.3%. Even more so, in Q1 2023, the growth is said to increase due to the total annulment of community activities restriction policy (PPKM), as well as the upcoming Ramadhan.

Sri Mulyani also revealed several other determinants that will solidify Indonesia’s economic pillar, including well-maintained inflation rate and solid investments. On the other hand, the export activities are estimated to relatively stagnant. “In 2023, the economic growth is projected to remain at approximately 5%, or close to the assumption of the State Budget of 5.3%, although we still keep an eye on the downside risk,” she further explained. (AM/ZH)