RECENT DEVELOPMENTS IN INDONESIA
Indonesia is one of the EMDEs countries, where in 2022 it had a GDP growth of 5.3%. This growth is much higher than the global growth of 3.1%. Meanwhile, Indonesia is also predicted to have a GDP growth of 4.9% - 5.0% in 2023-2025. This is also higher than the global GDP growth which is estimated to only reach around 2.1% - 3.0%. Among the 5 countries in selected East Asian companies, the economic growth in Indonesia is not the highest, but relatively stable. During pandemic, the government of Indonesia has never allowed the lockdown. However, they imposed the Community Activities Restriction Enforcement or CARE (Pemberlakuan Pembatasan Kegiatan Masyarakat or PPKM). By doing this, the economy activities could still be done although there were some restrictions. The result was the growth of goods exports in Indonesia were significantly higher than some East Asian countries, although it was also significantly declined during the end quarter of 2022. Inflation remains above central bank targets in some countries, including Indonesia. At that time, Bank Indonesia, which is the central bank of Indonesia has signaled a pause to tighten policy rates. The region’s recovery from the pandemic-induced recession is now well advanced, with output exceeding pre-pandemic levels in many countries, including Indonesia.