Indonesian Minister of Finance Sri Mulyani Indrawati, said that the Indonesia’s economy condition is showing good prospects. Indrawati’s statement was supported by the level of Purchasing Managers Index (PMI) in Indonesia’s manufacturing sector and the qualified Consumer Confidence Index (IKK).
Indonesia’s 51.9 PMI score is considered good at an expansive level, which has been consistent for 19 consecutive months. This strengthening was supported by expectations of increased demand ahead of Idul Fitri.
In addition, strong production sector improvement is apparent through high growth in electricity consumption of 12.4% Year-on-Year (YoY) recorded in March 2023, accompanied by positive growth in industrial electricity.
“If the world is still experiencing many challenges, thank God the Indonesian economy is in a relatively good position. From the PMI point of view, Indonesia is at the 51.9 level, which means it is expansive and accelerated, or strengthening,” said Indrawati on April 17, 2023.
From the consumption side, car sales on a wholesale YoY basis is experiencing a 2.6%, increase compared to the 2019 average. Meanwhile, motorcycle sales were also above the 2019 average, recording high growth of 40.5%.
“The Consumer Confidence Index (IKK) is also very strong at a score of 123.3. This is supported by controlled inflation, and people’s purchasing power which is gradually improving,” said Indrawati.
In the retail sector, there was a sharp 4.8% increase (YoY). The increase is associated with the moment of Ramadan, and ahead of Eid. “The government is optimistic that April will be well maintained and contribute to the recovery momentum, and Indonesia’s economic growth will remain high,” said Indrawati.
Indrawati explained that economic growth can still be maintained with various indicators showing an improving trend, which is influenced by the performance of the state revenue budget (APBN). “We also maintain the state budget so that it continues to have good performance and position, that is something we have to protect, and we are grateful for,” said Indrawati.
Indrawati added that with the global outlook continues to be improving, Indonesia is expected to be one of the countries that will grow strongly in 2023. The IMF projects that Indonesia will grow at 5% YoY in 2023, with prospects for the domestic economy both from production to consumption.
