Wahyu Dwi Anggoro
IDXChannel - Indonesia has shown good economic recovery after the pandemic, supported by strong macroeconomic performance and prudent implementation of monetary and fiscal policies, according to the International Monetary Fund (IMF),
"Bank Indonesia welcomes the results of the IMF assessment of the Indonesian economy, as presented in the 2023 Article IV Consultation report," BI Communication Department Executive Director Erwin Haryono said in a media release on Monday (26/6/2023).
In its is report, T\the IMF Board of Directors extends appreciation and positive notes on the various policies pursued by Indonesian authorities. First, the achievement of the 3 percent deficit ceiling one year earlier than envisaged and commended authorities' commitment to fiscal discipline. Second, the monetary policy has been tightened appropriately to preserve price stability. Third, the financial sector remains resilient.
Fourth, the recently adopted legislation on job creation and the financial sector while noting the importance of prompt implementation and continued reform momentum to promote an enabling business environment, enhance financial deepening, and mitigate the scarring effects of the pandemic. Fifth, Indonesia's diversification strategy focuses on downstream activities from its raw commodities. Sixth, the authorities' commitment to limit greenhouse gas emissions and deforestation.
The IMF projects that Indonesia's economic performance will remain strong with a slight moderation in 2023, given the tightening domestic policies and the normalization of global commodity prices. Nevertheless, the IMF is observing several risk factors that need to be monitored, particularly uncertain global economic and financial conditions that can potentially affect the growth outlook.
