Indonesia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Indonesia

Outlook and risks. The Indonesian economy performed strongly in 2022, driven by a recovery in domestic demand and solid export performance. Growth is projected to moderate slightly in 2023 amid tighter domestic policy settings and the normalization of commodity prices, while inflationary pressures are expected to subside, with inflation falling within BI’s headline inflation target band in the second half of 2023. Risks are balanced, but a highly uncertain global economic environment continues to cloud the outlook. Continued high inflation and growth slowdown in major economies, lower commodity prices, and heightened volatility in global financial markets constitute key near-term risks.