Jambi Bank of Indonesia (BI) is confident that economic growth in Jambi Province would go well as domestic demand also sees some improvements.

“Spatially, Jambi’s economic growth is estimated to grow positively in line with improving domestic demand and so are exports, following the revocation of the Zero COVID Policy in China,” deputy head of BI Jambi Representative Eva Ariesty stated on Saturday.

Jambi’s economy would still be supported by the plantation and mining sectors in the future, she remarked.

Moreover, the tourism sector has potential to develop and contribute to the area’s economy.

BI has consistently supported the province’s development in the tourism sector.

“Tourism sector, if developed, has great potential for Jambi,” Ariesty stated.

Global economic growth in 2023 is projected to maintain its growth rate despite the ever growing risk of recession in some countries, including the United States and Europe.

The increase in the Fed Funds Rate, which is forecast to be higher for longer until early 2023, has the potential to make the US dollar maintain its rate, thereby pressuring exchange rates in various countries.

Moreover, there is a need to make the most of the constant strong rate of the US dollar through external trade.

“As for external (factors), the abolition of the Zero COVID Policy will halt the global economic slowdown. Hence, export performance must be promoted as demands from major trading partners improved, particularly of Jambi’s main commodities, such as coal, CPO, and rubber,” she elaborated.

The possibly declining performance from external factors is expected to be compensated by better domestic demand that is driven by increased household consumption and non-construction investment.

Household consumption is forecast to increase at a faster rate as people begin to travel more following the cessation of community activities restriction policy.

“Investment is also predicted to improve, driven by improved business prospects, increased inflows of foreign investment, and the ongoing completion of the National Strategic Project (PSN),” he said.

BI will take front-loaded, pre-emptive, and forward-looking measures to maintain the rupiah exchange rate stability and reduce inflation risk to ensure that future core inflation bounced back to three percent, give or take one percent (yoy), in the first half of 2023.

Their measures, such as policy coordination with the central and regional governments and strategic partners, had also being pursued.

Cooperation between the central and regional inflation control teams is established by intensifying the national food inflation control program in various regions.

In the provincial scope, efforts include synergy between the Jambi regional inflation control team and the Food Task Force pursuing price control programs that imposed four aspects: affordability, supply availability, smooth distribution, and effective communication.

“For 2023, on a national scale, the expectation lies in domestic consumption, so what still has the opportunity to be expedited is trade and accommodation for food and beverages,” she concluded.

Source: Antara News