IMF Believes in Indonesia’s Economic Growth Amid Global Slowdown

Share:

Despite anticipating substantially lower global growth rates due to ongoing economic uncertainties and geopolitical tensions, the International Monetary Fund has revised its prediction for Indonesia’s economy. According to the IMF’s most recent prediction that is published in April and 0.2 percentage points higher than the forecast made in January, Indonesia’s GDP growth would reach a 5% level in 2023. 

The result also places Indonesia’s economy nearly on pace with China’s growth projection for this year, which the IMF opted to retain from its January report at 5.2%.

Indonesia's Economic Growth GDP graph
Source adb.org

Check out more information about Indonesia’s economic growth on IMF official website here

In contrast, the IMF revised its prediction for the world economy to 2.8%, 0.1 percentage points less than it had predicted in January. According to Faisal Rachman, an economist at state-owned lender Bank Mandiri, Indonesia’s internal solid economy is the reason for the fund’s favourable prognosis. Even with sluggish global growth in 2023, Indonesia’s economy will be able to maintain its resilience.

According to Faisal Rachman, an economist at state-owned lender Bank Mandiri, Indonesia’s robust domestic economy is the primary factor for the fund’s optimistic outlook for the nation. Thus, the economy will be able to keep its resilience even in 2023 when global growth is expected to be slow.

In a statement on Wednesday, the 12th of April 2023, Faisal said that Indonesia’s economic and domestic initiatives, notably consumer spending had stabilized and even risen due to increased mobility and a decline in inflation. Faisal predicted that commodity prices would continue declining but more gradually, harming Indonesian exports.

Additional sources of growth will come from investment, as measured by gross fixed capital formation (PMTB), which Faisal anticipates will move to construction investment from its prior concentration on commodity-related investment due to increasing state on spending infrastructure. Despite the bright future, Faisal predicts that Indonesia’s economic GDP growth will be lower than last year, falling 5.04% from the previous 5.31%.

The projection is much lower than the government’s 5.3 per cent objective for this year, which the Finance Ministry has opted to stick to despite many experts anticipating the worst. According to data from Statistics Indonesia, China accounts for 24.93% and 29.89% of Indonesia’s exports and imports, respectively. Comparatively speaking, the numbers for other significant trading partners like the US and Europe which have been adversely affected by the current state of conditions on the global scale, are far lower.

Furthermore, Indonesia’s faster-than-expected fiscal consolidation has played a crucial part in convincing the IMF that Indonesia’s economy would be in stable condition despite the global recession that is happening right now, 

Interested about this topic? Check out our other articles: 

Related News

The proposed North Bali International Airport project, long discussed as a solution to the island’s regional development imbalance, is reportedly set to move forward following statements by high-ranking government officials. As reported by Antara, Coordinating Minister for Community Empowerment, Abdul Muhaimin Iskandar, commonly known as Cak Imin, confirmed on Thursday, 26 June 2025, that President […]

Foreign tourists visiting Bali during June may expect dry, sunny days. However, rainfall has still been observed, and this aligns with the latest forecast from Indonesia’s Meteorology, Climatology and Geophysics Agency (BMKG), which states that the dry season’s onset has shifted. According to the Head of the Bali Climatology Station, Aminudin Al Roniri, the peak […]

The Jakarta Provincial Government is set to introduce a Car Free Night (CFN) every Saturday, beginning with a trial phase scheduled after the peak of Jakarta’s 488th-anniversary celebrations in late June 2025. This initiative is intended to encourage environmentally friendly activities and accommodate residents’ increasing preference for night-time exercise. Unlike the existing Car Free Day […]

Jetstar has announced the launch of a new direct international route between Newcastle Airport and Bali (Denpasar), with services scheduled to commence on 21 October 2025. This marks Newcastle’s return to regular international flights for the first time in over five years. The new service will operate three times per week using Jetstar’s modern A321LR […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery