Jakarta – The International Monetary Fund (IMF) cuts its projection of Indonesia’s GDP growth to at 5.4% in 2022, from previously 5.6%, it said in a statement on Tuesday (22/3). The IMF said that Indonesian economy is “recovering at a brisk pace” after “the Delta variant surge slowed the economic recovery in mid-2021, but growth picked up in the fourth quarter and is expected to strengthen over 2022−23,” adding that the economy will grow further to 6% in 2023.
The IMF Directors welcomed Indonesian authorities’ “efforts to tackle climate change and took positive notes of their recent climate change mitigation measures. They encouraged the authorities to undertake further reforms, including on energy subsidies, measures on carbon pricing and the emission trading system, and fostering a green financial market.”
The statement was issued after IMF Executive Board concluded the Article IV consultation with Indonesia. The consultation, usually held bilaterally every year between the IMF and member countries, where they discuss the country’s economic developments and policies.
Bank Indonesia spokesperson Erwin Haryono in a statement Wednesday said that the
IMF’s positive projection “is in line with the results of an assessment by Bank Indonesia, which predicts that the momentum for national economic improvement will continue in 2022.”
He said Bank Indonesia continues to optimize the policy mix to maintain stability and support national economic recovery. Policy synergies with relevant authorities continue to be carried out, especially in the context of accelerating vaccination, opening up productive economic sectors, and efforts to encourage increased financing in priority sectors. (nsh)
