Indonesia Central Bank Said Economy to Grow 5.1 Percent by Controlling Inflation

VIVA – Indonesia’s economy to grow 5.1 percent annually in 2023 as the authority has continued to control inflation. It was according to Governor of Bank Indonesia (BI) Perry Warjiyo.

"Inflation in the second half (of 2023) can (fall) below four percent. In the first semester, inflation remains above five percent. So we have to work hard in reducing inflation, especially food inflation," Governor Warjiyo stated at the kick-off event for the 2023 Food Inflation Control National Movement (GNPIP) followed online on Sunday.

Inflation control by maintaining food security will encourage people's consumption which contributes more than 50 percent to the gross domestic product (GDP).

"Indonesia can also increase exports to Indonesia and China that currently become sources of the world's economic growth," he said.

The government is trying to control the prices of commodities by synergizing, especially to control the prices of foods such as rice and cooking oil. As for Bank Indonesia with its 46 representative offices spread across Indonesia, also continues to cooperate with regional governments in improving food security.

The 2023 GNPIP will be carried out through various programs, such as affordable markets, strengthening of cooperation between regions, subsidies for freight costs, chili-planting movement, business model replication, provision of agricultural tools and machines to farmers, and strengthening of coordination and communication.

"Let us continue to be vigilant and synergize and innovate to control inflation, especially volatile price inflation, and administered prices," Governor Warjiyo said.

Previously, Deputy for Distribution and Services Statistics of the Central Statistics Agency (BPS) Pudji Ismartini reminded the government to maintain commodity prices, especially household fuel and cooking oil, which have the potential to drive inflation in Ramadan 2023.