The Institute For Development of Economics and Finance (Indef) projects that the Indonesian economy will grow 4.9% in the first quarter of 2023 compared to the same period in 2022. This estimate is lower than the realization of economic growth in the previous quarter, namely the fourth quarter of 2022 which grew by 5.01% (yoy). "That is if it is realistic enough by looking at the current situation," said Indef Executive Director Tauhid Ahmad in an online press conference followed in Jakarta, Tuesday 7 February 2023. He mentioned the situation in question, namely that there was no significant economic driver at the beginning of the year, even though inflation was quite high. In addition, government consumption is also considered to be relatively slower because the distribution of social assistance (bansos) cannot be carried out at the beginning of the year due to administrative problems.
Recently, Indonesia has also been faced with a situation where the price of rice is quite high, making it difficult to obtain. Export performance has also seen a decline in early January 2023 since November 2022. Thus, these conditions illustrate that the impact of global shocks will be even more severe this year. Therefore, Tauhid said this development is a signal that the government must improve several things, including reducing inflation which erodes purchasing power, maintaining public consumption, and improving government stimulus to make it even better. "Pressure in several sectors, especially industry, has also begun to occur extraordinary and will be felt in 2023," he said.
