Economy can grow 5.1 percent by controlling inflation: BI
Governor of Bank Indonesia (BI) Perry Warjiyo stated that Indonesia's economy would be able to grow 5.1 percent annually in 2023 as the authority has continued to control inflation.
"Inflation in the second half (of 2023) can (fall) below 4 percent. In the first semester, inflation remains above 5 percent so we have to work hard in reducing inflation, especially food inflation," he said 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," Warjiyo said.
Currently, 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.
BI, 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.
At Sunday's event, Warjiyo stated that last year's edition of GNPIP, which was started in July, was able to reduce food inflation from 11.47 percent annually to 5.61 percent at the end of 2022.
"In all regions, food inflation in 2022 also experienced a drastic decrease," he stated.
Through the 2022 GNPIP, BI held 2,638 cheap market events, formed 63 cross-region collaborations, carried out 75 freight cost subsidy programs, and distributed 2.4 million grow bags.
BI also carried out 86 business model replication programs, distributed agricultural tools and machines worth Rp32.21 billion and carried out 48 programs for data and information digitalization.
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