BI : A Bright Outlook of the Indonesia’s Economy for 2020

The Bank Indonesia’s note stated that the Indonesia’s economic performance this year was quite stable. This led to the confidence that the next year would be kept well.

The Governor of BI, Pery Warjiyo, explained that such performance gave optimism that the economic outlook for 2020 would be kept under control and become the momentum for sustainable economic growth.

“Low inflation rate at 3.1 percent as the end of 2019, and it would be kept under control according to the 3±1 percent inflation target for 2020,” said Perry in Kuningan, South Jakarta, on Thursday (28/11).

Perry said, the exchange rate of rupiah-US dollar was continuously appreciating through 2019. In 2020, it was predicted that rupiah would keep stable, similar to the financial system’s stability.

“The bank credit growing narrowly in 2019 will be increasing in 2020, in accordance to the decrease in interest rates and the improvement of economic outlook,” said Perry.

In medium term, Perry believed that the Indonesia’s economic outlook would be better as well, with the transformation of the economy would accelerate the economic growth by reducing the current account deficit and lowering inflation.

However, Perry did not forget to remind about some facts that were considered to influence the state of the economy in 2019, and became the characteristic of the domestic economic growth and future challenge.

“The world economic growth dropped significantly in 2019. It is possible in 2020 this will have not been yet recovered, then it must be anticipated,” said Perry.

“The trade war is likely to continue, while the monetary policy is not always effective for curing the damage. The volatility of foreign capital flows and exchange rates in global financial market seems to be continuing,” he added.