FOREWORD

The Board of Governors

PERRY WARJIYO
Governor

DESTRY DAMAYANTI
Senior Deputy Governor

DONI PRIMANTO JOEWONO

Deputy Governor

JUDA AGUNG
Deputy Governor

AIDA S. BUDIMAN
Deputy Governor

FILIANINGSIH HENDARTA
Deputy Governor

DODY BUDI WALUYO

Deputy Governor
Until 17 April 2023

i • Quarter I 2023
 Table of Content

Foreword i Executive Summary 1

The Board of Governors i 1. Global and Domestic Economic 2

Developments

Table of Content ii
2. Bank Indonesia Policy Response 5

• Quarter I 2023 ii
Executive Summary
Global economic improvements are persisting. Stronger
economic growth in the United States (US) is also forecast
due to solid first-quarter performance in 2023. Improving
economic growth, coupled with tight labour markets in
the US and Europe, have prolonged the process of
lowering global inflation and extended monetary policy
tightening in advanced economies for longer, which is
nevertheless expected to peak soon. Meanwhile, the
response of central banks in the US and Europe to
mitigate the risk of bank closures has eased global
financial market uncertainty. In turn, such developments
have triggered an influx of foreign capital flows and
strengthened exchange rates in developing economies,
including Indonesia.
At home, economic growth in Indonesia remains solid on
the back of increasing domestic demand and positive
export performance. Indonesia’s Balance of Payments
(BOP) remains sound, thereby supporting external
resilience. The rupiah appreciated in line with BI
stabilisation measures. Inflation continues to fall, thus
supporting economic stability. Liquidity conditions in the
banking industry and economy remain ample to revive
lending/financing and bolster economic growth. The bank
1 Triwulan I 2020
intermediation function continues to increase, thereby
maintaining economic recovery momentum. Financial
system resilience remains solid, particularly the banking
industry, in terms of capital, credit risk and liquidity.
Digital economic and financial transactions are increasing,
underpinned by a fast and reliable payment system.
The BI Board of Governors Meeting agreed on 17th and
18th April 2023 to hold the BI 7-Day Reverse Repo Rate at
5.75%, while also maintaining the Deposit Facility (DF)
rate at 5.00% and Lending Facility (LF) rate at 6.50%. The
decision is consistent with the pre-emptive and forward-
looking monetary policy stance to ensure lower inflation
expectations and inflation moving forward. Bank
Indonesia is confident that a BI7DRR rate of 5.75% is
sufficient to direct core inflation within the 3.0%±1%
target corridor in 2023 and return Consumer Price Index
(CPI) inflation to the 3.0%±1% sooner than previously
projected. Rupiah stabilisation policy has also been
strengthened to control imported inflation and mitigate
the contagion effect of global financial market uncertainty
on the rupiah.
CHAPTER 1
Global and Domestic
Economic Developments
Global economic improvements are persisting. Bank
Indonesia still projects global economic growth in 2023 at
2.6% given the positive impact of post-pandemic
economic growth in China, particularly the services
sector, thereby alleviating the contagion effect to the
global economy compared with the previous projection.
Stronger economic growth in the United States (US) is
also expected due to solid first-quarter performance in
2023. Improving economic growth, coupled with tight
labour markets in the US and Europe, have prolonged the
process of lowering global inflation and extended
monetary policy tightening in advanced economies for
longer, which is nevertheless expected to peak soon.
Meanwhile, the response of central banks in the US and
Europe to mitigate the risk of bank closures has eased
global financial market uncertainty. In turn, such
developments have triggered an influx of foreign capital
flows and strengthened exchange rates in developing
economies, including Indonesia.
At home, economic growth in Indonesia remains solid on
the back of increasing domestic demand and positive
export performance. Private consumption is expected to
strengthen in line with increasing mobility, growing
consumer confidence and stronger purchasing power
given lower inflation. Investment activity continues,
dominated by non-building investment. Moreover,
export performance remains positive. As of March 2023,
Indonesian non-oil and gas exports maintained solid
growth on shipments of coal, electrical machinery and
motor vehicles. By destination country, non-oil and gas
exports bound for China, the US and Japan were the main
contributors. By sector, strong growth is projected for the
manufacturing industry, trade as well as information and
communication. Regionally, consumption is increasing in
nearly all regions, accompanied by solid export
performance in the Sulawesi-Maluku-Papua (Sulampua)
region. Consequently, national economic growth in 2023
• Quarter I 2023 2
is predicted with an upward bias towards the top end of Inflation continues to fall, thus supporting economic
the 4.5-5.3% range. stability. Monthly Consumer Price Index (CPI) inflation
stood at 0.18% (mtm) in the reporting period, which is
Indonesia’s Balance of Payments (BOP) remains sound,
lower than historical trends at the beginning of Ramadan,
thereby supporting external resilience. The current
thereby bringing annual inflation down to 4.97% (yoy)
account is predicted to record a surplus in the first from 5.47% (yoy) one month earlier. Broad-based
quarter of 2023, supported by a positive goods trade declines were recorded across all components, namely
balance totalling USD12.3 billion. The capital and core inflation, volatile food (VF) inflation and
financial account is also projected to record a surplus in administered prices (AP) inflation. Core inflation in March
the first quarter of 2023 in line with an influx of foreign
2023 continued to moderate from 3.09% (yoy) to 2.94%
capital inflows in the form of portfolio investment, which
(yoy) in line with lower inflation expectations and milder
recorded a net inflow of USD4.7 billion in the first quarter
imported inflation pressures, coupled with adequate
of 2023. Foreign capital inflows to portfolio investment
aggregate supply in response to the increasing demand
persisted in April 2023, recording a net inflow of USD1.2
for goods and services. Meanwhile, VF inflation fell from
billion as of 14th April 2023. Foreign capital inflows
7.62% (yoy) in February 2023 to 5.83% (yoy) in the
returned to Indonesia as global financial market
reporting period in line with the positive impact of a pre-
uncertainty eased, accompanied by improving domestic emptive and forward-looking monetary policy response
economic conditions, such as solid economic growth, low instituted by Bank Indonesia, together with close synergy
inflation and attractive yields on financial assets for
between Bank Indonesia and the (central and regional)
investment. The position of reserve assets in Indonesia
Government through the Central and Regional Inflation
increased to USD145.2 billion at the end of March 2023,
Control Teams (TPIP and TPID) as well as the National
equivalent to 6.4 months of imports or 6.2 months of
Movement for Food Inflation Control (GNPIP) in various
imports and servicing government external debt, which is
regions. Bank Indonesia, therefore, is confident that core
well above the international adequacy standard of around
inflation will remain under control in the 3.0%±1% target
three months of imports. Positive BOP performance is
corridor in 2023 and CPI inflation will return to the
expected to persist in 2023, with a manageable current
3.0%±1% target sooner than previously expected.
account maintained in the range of a 0.4% surplus to a
Furthermore, Bank Indonesia will continue strengthening
0.4% deficit of GDP. Meanwhile, the capital and financial
coordination with the (central and regional) Government
account is expected to amass a larger surplus, supported
to control inflation.
by foreign capital inflows in the form of FDI and portfolio
investment. Liquidity conditions in the banking industry and
economy remain ample to revive lending/financing and
The rupiah appreciated in line with BI stabilisation
bolster economic growth. In line with the
measures. The rupiah appreciated 1.38% (ptp) in value as
accommodative liquidity policy stance of Bank Indonesia,
of 17th April 2023 compared with the level at the end of
the ratio of liquid assets to third-party funds was still high
March 2023, boosted by strong foreign capital inflows of
in March 2023 at 28.91%. Liquidity in the economy also
portfolio investment. Year-to-date, the rupiah gained remains ample, as reflected by growth of the narrow
5.26% on the level recorded at the end of December
money (M1) and broad money (M2) monetary aggregates
2022, thus exceeding the rupee (0.93%), baht (0.71%) and
at 4.8% (yoy) and 6.2% (yoy) respectively. In turn, loose
peso (0.22%). Moving forward, Bank Indonesia expects to liquidity conditions support the availability of funds for
maintain rupiah stability in line with the current account
the banking industry to disburse loans/financing to
surplus and maintained foreign capital inflows, given the
businesses and direct interest rates that are conducive to
promising domestic economic growth outlook, low
economic growth. In the money market, the IndONIA rate
inflation and attractive yields on domestic financial assets
as of 17th April 2023 remained low at 5.65%. The yield of
for investment. Furthermore, Bank Indonesia will
short-term SBN decreased 20bps on the level at the end
continue strengthening rupiah stabilisation policy to of February 2023 to 6.24%, while long-term yields were
control imported inflation and mitigate the contagion
more stable. The 1-month term deposit rate in March
effect of global financial market uncertainty on rupiah
2023 was also recorded low at 4.10%, down 2bps on the
exchange rates. Rupiah stabilisation policy has also been level in February 2023. Meanwhile, the average lending
strengthened by DHE management through the
rate in March 2023 was still conducive to support
implementation of foreign currency term deposits (TD) in
demand, namely at 9.38%, up 4bps on the previous
accordance with market mechanisms.
month. Bank Indonesia will continue ensuring adequate

3 • Quarter I 2023
liquidity to maintain financial system stability and revive
lending/financing for the national economic recovery.
The bank intermediation function continues to increase,
thereby maintaining economic recovery momentum.
Growth of loans disbursed by the banking industry in
March 2023 remained high at 9.93% (yoy).
Intermediation in the sharia banking industry accelerated
to 19.43% (yoy) in March 2023. Robust MSME credit
growth persisted, reaching 8.63% (yoy) in March 2023,
supported by the realisation of People's Business Loans
(KUR) that totalled Rp30.31 trillion at the end of March
2023. Strong credit growth was driven on the supply side
by adequate liquidity and loose lending standards in the
banking industry, while demand for lending/financing was
supported by corporate and household demand in line
with corporate and MSME performance as well as
maintained household consumption. Bank Indonesia will
continue reviving bank intermediation by prioritising Slow
Starters, People’s Business Loans (KUR) and green finance
to accelerate the economic recovery. Taking into account
recent developments and strong synergy, credit growth in
2023 is consistent with the previous projection in the 10-
12% range.
Financial system resilience remains solid, particularly the
banking industry, in terms of capital, credit risk and
liquidity. The Capital Adequacy Ratio (CAR) in the
banking industry was still high in February 2023 at
26.02%. Strong capital effectively contributed to low NPL
ratios of 2.58% (gross) and 0.75% (nett) in February 2023.
Liquidity in the banking industry in March 2023 was
maintained, supported by 7.00% (yoy) growth of third-
party funds. BI stress tests further confirmed solid bank
resilience in Indonesia. Meanwhile, Bank Indonesia will
continue strengthening synergy with the Financial System
Stability Committee to mitigate various domestic and
global macroeconomic risks that could undermine
financial system resilience.
Digital economic and financial transactions are
increasing, underpinned by a fast and reliable payment
system. The value of electronic money transactions in
March 2023 grew 11.39% (yoy) to reach Rp34.1 trillion.
The value of digital banking transactions grew 9.88% (yoy)
to reach Rp4,944.1 trillion and the value of transactions
using ATM cards, debit cards and credit cards increased
0.45% (yoy) to reach Rp707.1 trillion. Moving forward,
Bank Indonesia expects digital economic and financial
transactions to continue growing as public activity
increases combined with the expansion and optimisation
of the user ecosystem. In conjunction with the
Coordinating Ministry of Economic Affairs of the Republic
of Indonesia and relevant associations, Bank Indonesia is
hosting the Indonesia Digital Economy and Finance
Festival (FEKDI) 2023 from 7-10th May 2023 in Jakarta as
part of the ASEAN Chairmanship activities in 2023,
showcasing various digital initiatives and innovations in
Indonesia. Meanwhile, total currency in circulation in
March 2023 increased 6.73% (yoy) to reach Rp948.8
trillion. Bank Indonesia will continue ensuring the
availability of quality rupiah currency fit for circulation
throughout the territory of the Republic of Indonesia
through the SERAMBI program by strengthening public
cash services offered by the banking industry and Bank
Indonesia, while providing facilities to exchange currency
at busy locations and strategic destinations on various
routes for the annual exodus of Muslims returning to
their family homes to celebrate Eid-ul-Fitr (mudik).
• Quarter I 2023 4
CHAPTER 2
Bank Indonesia Policy
Response
The BI Board of Governors Meeting agreed on 17th and
18th April 2023 to hold the BI 7-Day Reverse Repo Rate at
5.75%, while also maintaining the Deposit Facility (DF)
rate at 5.00% and Lending Facility (LF) rate at 6.50%. The
decision is consistent with the pre-emptive and forward-
looking monetary policy stance to ensure lower inflation
expectations and inflation moving forward. Bank
Indonesia is confident that a BI7DRR rate of 5.75% is
sufficient to direct core inflation within the 3.0%±1%
target corridor in 2023 and return Consumer Price Index
(CPI) inflation to the 3.0%±1% sooner than previously
projected. Rupiah stabilisation policy has also been
strengthened to control imported inflation and mitigate
the contagion effect of global financial market uncertainty
on the rupiah.
Bank Indonesia, therefore, has strengthened its policy mix
response to maintain stability and revive growth as
follows:
5 • Quarter I 2023
1. Strengthening monetary operations to increase the
effectiveness of monetary policy transmission.
2. Strengthening rupiah stabilisation policy as part of
the measures to control inflation, particularly
imported inflation, through foreign exchange market
intervention, including spot and Domestic Non-
Deliverable Forward (DNDF) transactions, as well as
buying/selling government securities (SBN) in the
secondary market.
3. Continuing the twist operation by selling short-term
SBN in the secondary market to increase the
attractiveness of SBN yields for foreign portfolio
investment inflows to strengthen rupiah stabilisation
measures.
4. Maintaining accommodative monetary policy by
holding: (a) the Countercyclical Capital Buffer (CCyB)
at 0%, (b) Macroprudential Intermediation Ratio
(MIR) in the 84-94% range, and (c) Macroprudential
Liquidity Buffer (MPLB) at 6% with 6% repo flexibility
 and the Sharia MPLB at 4.5% with 4.5% repo
flexibility.
5. Increasing the macroprudential policy incentives to
revive bank lending to priority sectors and Slow
Starters, including People’s Business Loans (KUR) and
green finance, effective from 1st April 2023, as
follows:
a. Increasing the total macroprudential incentives
available to banks from 200bps to 280bps,
comprising incentives for lending to priority
sectors up to a maximum of 1.5%, a twofold
increase in the incentives for extending People’s
Business Loans (KUR) and MSME
loans/financing up to 1%, and incentives for
disbursing green finance up to 0.3%.
b. Reallocating the target of macroprudential
incentives to Slow Starters by maintaining a low
credit growth threshold at a minimum of 1%,
while raising the threshold for Growth Drivers
and Resilient subsectors from 1% to 3% and 5%
respectively.
6. Continuing prime lending rate (PLR) transparency
policy with a focus lending rates in sectors associated
with downstreaming.
7. Strengthening payment system digitalisation policy to
improve transaction efficiency as well as the
economic-financial digital ecosystem by: (i)
implementing cross-border QRIS payment
interconnectivity between Indonesia and Malaysia,
and (ii) rolling out the physical domestic government
credit card in close coordination with the
Government and Indonesia Payment System
Association (ASPI) to coincide with the Indonesia
Digital Economy and Finance Festival (FEKDI) at the
beginning of May 2023.
8. Strengthening payment system policy during the holy
fasting month of Ramadan and Eid-ul-Fitr 1444 H by
safeguarding the availability, reliability and security
of the BI and industry payment systems, which
includes monitoring the reliability of participants'
systems to provide payment system transaction
services, and ensuring the availability of rupiah
currency fit for circulation throughout the territory of
the Republic of Indonesia.
9. Strengthening international cooperation with other
central banks and authorities in partner countries,
while promoting trade and investment in priority
sectors in synergy with relevant institutions. In
addition, Bank Indonesia is continuing to collaborate
with relevant government ministries/agencies to
ensure a successful ASEAN Chairmanship in 2023,
particularly in terms of the finance track.
Policy coordination with the (central and regional)
Government and strategic partners is also strengthened
constantly. To that end, coordination within the Central
and Regional Inflation Control Teams (TPIP and TPID) is
maintained by strengthening the National Movement for
Food Inflation Control (GNPIP) in various regions.
Furthermore, policy synergy between Bank Indonesia and
the Financial System Stability Committee is also
strengthened to maintain macroeconomic and financial
system stability, while reviving lending/financing to
priority sectors to support economic growth and exports,
as well as advancing the green and inclusive economy and
finance.
• Quarter I 2023 6
 Global economic improvements are persisting
Global GDP Growth Global PMI

Consumer Confidence Index Retail Sales

World Trade Volume and Global GDP Commodity Prices

7 • Quarter I 2023
Global Uncertainty Index 10 Yr UST & JGB Yield and DJIA Index

US Dollar Performance and Risk Perception Indicators on EM Emerging Market Capital Flow

Economic growth in Indonesia remains solid on the back of increasing domestic demand and
positive export performance
Economic Growth – Expenditure Side Economic Growth – Economic Sectors Side
2020 2021 2022
2020 2021 2022 Components
I II III IV
2020
I II III IV
2021
I II III IV
2022

Components 2020 2021 2022

I II III IV I II III IV I II III IV Agriculture, Forestry, and Fisheries 0.03 2.20 2.18 2.64 1.77 3.48 0.56 1.44 2.33 1.87 1.16 1.68 1.95 4.51 2.25

Mining and excavation 0.45 -2.72 -4.28 -1.20 -1.95 -2.02 5.22 7.78 5.15 4.00 3.82 4.01 3.22 6.46 4.38

Household Consumption 2.83 -5.52 -4.05 -3.61 -2.63 -2.21 5.96 1.02 3.56 2.02 4.34 5.51 5.39 4.48 4.93 Manufacture 2.06 -6.18 -4.34 -3.14 -2.93 -1.38 6.58 3.68 4.92 3.39 5.07 4.01 4.83 5.64 4.89

Electricity and Gas Procurement 3.85 -5.46 -2.44 -5.01 -2.34 1.68 9.09 3.85 7.81 5.55 7.04 9.33 8.05 2.31 6.61
Non-Profit Institution Serving
-4.99 -7.78 -1.92 -1.92 -4.21 -3.65 4.06 2.87 3.20 1.62 5.90 5.02 5.97 5.70 5.64 Water Supply 4.38 4.44 5.94 4.98 4.94 5.46 5.78 4.56 4.14 4.97 1.35 4.46 4.26 2.84 3.23
Household (NPISH) Construction 2.90 -5.39 -4.52 -5.67 -3.26 -0.79 4.42 3.84 3.91 2.81 4.83 1.02 0.63 1.61 2.01

Government Consumption 3.87 -6.51 9.81 1.93 2.12 2.57 8.22 0.65 5.29 4.24 -6.62 -4.63 -2.55 -4.77 -4.51 Wholesale Retail, Car and Motorcycle Repairs 1.50 -7.68 -5.14 -3.66 -3.79 -1.28 9.50 5.12 5.54 4.63 5.73 4.43 5.37 6.55 5.52

Transportation and Warehousing 1.27 -30.79 -16.71 -13.42 -15.05 -13.09 25.10 -0.72 7.93 3.24 15.79 21.27 25.80 16.99 19.87

Investment (GFCF) 1.70 -8.61 -6.52 -6.17 -4.96 -0.21 7.52 3.76 4.49 3.80 4.08 3.09 4.98 3.33 3.87 Provision of Accomodation, Food and Beverages 1.92 -22.01 -11.86 -8.91 -10.26 -7.28 21.54 -0.14 4.98 3.89 6.58 9.80 17.83 13.81 11.97

Information and Communication 9.82 10.85 10.72 10.99 10.61 8.72 6.90 5.54 6.24 6.82 7.15 8.06 6.95 8.75 7.74
Building Investment 2.76 -5.26 -5.60 -6.63 -3.78 -0.74 4.36 3.36 2.48 2.32 2.58 0.92 0.07 0.11 0.91 Financial Services and Insurance 10.63 1.06 -0.95 2.37 3.25 -2.97 8.33 4.29 -2.59 1.56 1.64 1.50 0.87 3.76 1.93

Real Estate 3.81 2.31 1.96 1.25 2.32 0.94 2.82 3.42 3.94 2.78 3.78 2.16 0.63 0.39 1.72
NonBuilding Investment -1.46 -18.62 -9.16 -4.76 -8.44 1.44 18.50 4.96 10.40 8.42 8.63 9.71 19.32 12.11 12.53
Corporate Services 5.39 -12.09 -7.61 -7.02 -5.44 -6.10 9.94 -0.59 0.89 0.73 5.96 7.92 10.79 10.42 8.77

Exports 0.41 -13.59 -12.72 -7.45 -8.42 2.17 28.41 20.74 22.24 17.95 14.22 16.40 19.41 14.93 16.28 Government Administration, Defence and Compulsory Social Security 3.16 -3.21 1.82 -1.56 -0.03 -2.24 9.94 -9.95 0.99 -0.33 -1.29 -1.52 12.48 1.78 2.52

Education Services 5.86 1.18 2.39 1.33 2.61 -1.54 5.88 -4.43 0.72 0.11 -1.41 -1.06 4.46 0.42 0.59

Imports -6.05 -21.27 -25.03 -17.64 -17.60 5.21 33.20 31.08 32.61 24.87 16.04 12.72 25.37 6.25 14.75 Health Services and Other Social Activities 10.33 3.67 15.26 16.53 11.56 3.38 11.68 14.04 12.16 10.45 4.52 6.50 -1.71 2.47 2.74

Other Services 7.09 -12.60 -5.55 -4.84 -4.10 -5.15 11.97 -0.30 3.35 2.12 8.25 9.26 9.13 11.14 9.47
GDP 2.97 -5.32 -3.49 -2.17 -2.07 -0.69 7.08 3.53 5.03 3.70 5.02 5.46 5.73 5.01 5.31 GDP 2.97 -5.32 -3.49 -2.17 -2.07 -0.69 7.08 3.53 5.03 3.70 5.02 5.46 5.73 5.01 5.31

• Quarter I 2023 8
 Growth of Regional Economic (GDRP) of the Fourth Quarter of Consumer Confidence Index
2022

Farmers’ Exchange Rate Retail Sales

Online Sales Realization of State Budget (APBN)

2020 2021 2022 2023
Realization Realization
Realization
ITEMS Realization % Realization Budget as of December Budget PERPRES 98/2022 as of December Budget
as of March 2023
(IDR Trillion) PERPRES 72 (IDR Trillion) 2021 (IDR Trillion) (IDR Trillion) 2022 (IDR Trillion)
(IDR Trillion)
(IDR Trillion) (IDR Trillion)
A. State Income and Grants 1,647.8 96.9% 1,743.6 2,009.6 1,846.1 2,266.2 2,635.4 2,463.0 613.6
I. Domestic Income 1,629.0 95.9% 1,742.7 2,005.1 1,845.6 2,265.6 2,629.7 2,462.6 613.6
1. Tax Income 1,285.1 91.5% 1,444.5 1,546.8 1,510.0 1,784.0 2,034.6 2,021.2 486.4
2. NonTax Income 343.8 116.9% 298.2 458.3 335.6 481.6 595.2 441.4 127.1
II. Grant 18.8 1448.7% 0.9 4.5 0.6 0.6 5.6 0.4 0.0
B. State Expenditures 2,595.5 94.8% 2,750.0 2,773.6 2,714.2 3,106.4 3,095.5 3,061.2 518.6
I. Central Government Expenditures 1,833.0 92.8% 1,954.5 1,987.9 1,944.5 2,301.6 2,279.2 2,246.5 347.2
1. Employee Spending 380.5 94.3% 421.1 387.7 426.5 426.5 402.4 442.6 91.2
2. Spending for Goods 422.3 154.6% 362.5 529.6 339.7 339.7 426.0 387.0 58.2
3. Capital Expenditures 190.9 139.0% 246.8 228.6 199.2 199.2 240.4 199.1 23.5
4. Payment of Debt Obligations 314.1 92.7% 373.3 343.5 405.9 405.9 386.3 441.4 100.2
5. Subsidies 196.2 102.2% 175.4 241.0 207.0 283.7 252.8 298.5 37.5
6. Grant Expenditure 6.3 123.7% 6.8 4.3 4.8 4.8 5.8 0.0 0.0
7. Social Assistance 202.5 116.1% 161.4 173.6 147.4 147.4 161.5 148.6 35.9
8. Other Expenditures 120.0 26.6% 207.3 79.5 214.0 494.4 403.9 329.3 0.7
II. Transfer to Regions and Village Funds 762.5 99.8% 795.5 785.7 769.6 804.8 816.2 814.7 171.3
1. Transfer to Regions 691.4 99.8% 723.5 713.9 701.6 736.8 748.3 744.7 158.3
2. Village Funds 71.1 99.9% 72.0 71.9 68.0 68.0 67.9 70.0 13.0
C. Primary Balance (633.6) (633.1) (420.5) (462.2) (434.4) (46.4) (156.8) 195.3
D. Budget Surplus/Deficit (947.7) (1,006.4) (764.0) (868.0) (840.2) (460.1) (598.2) 95.0
Surplus/Deficit (%GDP) (6.1) (5.7) (4.5) (4.9) (4.5) (2.3) (2.8) 0.4

9 • Quarter I 2023
Manufacturing Purchasing Managers’ Index (PMI) Non-oil and Gas Exports

Non-Oil and Gas Exports to Main Destination Countries Spatial Non-oil and Gas Exports

Non-oil and Gas Imports Import of Construction Goods

• Quarter I 2023 10
 Indonesia’s Balance of Payments (BOP) remains sound, thereby supporting external resilience.
The rupiah appreciated in line with BI stabilisation measures
Indonesia’s Balance of Payments Trade Balance
Items (Billion USD) 2021 2022
2019 2020
I II III IV Total I* II* III* IV** Total
Current Account -30.3 -4.43 -1.09 -1.93 4.95 1.52 3.46 0.55 3.86 4.54 4.26 13.22
A. Goods 3.5 28.30 7.63 8.34 15.41 12.43 43.81 11.30 16.80 17.62 16.96 62.68
- Exports, fob 168.5 163.40 49.38 54.32 61.65 67.49 232.84 66.77 75.17 77.84 72.77 292.55
- Imports, fob -164.9 -135.10 -41.75 -45.98 -46.24 -55.05 -189.03 -55.47 -58.38 -60.21 -55.81 -229.87
a. Non-Oil and Gas 12.0 29.95 9.98 11.58 18.12 18.13 57.80 17.21 24.44 25.16 22.96 89.77
b. Oil and Gas -10.3 -5.39 -2.27 -3.14 -2.51 -5.04 -12.97 -5.69 -7.19 -6.48 -5.41 -24.77
B. Services -7.6 -9.76 -3.39 -3.71 -3.60 -3.96 -14.65 -4.38 -5.01 -5.41 -5.24 -20.04
C. Primary Income -33.8 -28.91 -6.75 -8.02 -8.27 -8.91 -31.96 -7.87 -9.45 -9.07 -9.39 -35.78
D. Secondary Income 7.6 5.93 1.43 1.46 1.42 1.95 6.26 1.49 1.52 1.41 1.93 6.36
Capital and Financial Account 36.60 7.92 5.77 1.66 6.90 -2.10 12.23 -1.83 -1.10 -5.49 -0.43 -8.86
1. Direct Investment 20.5 14.14 4.49 5.40 3.38 3.84 17.11 4.40 3.60 3.51 3.60 15.12
2. Portfolio Investment 22.0 3.37 4.90 3.99 1.20 -5.02 5.07 -3.18 -0.45 -3.12 -2.27 -9.02
3. Other Investment -6.1 -9.64 -3.73 -7.76 2.14 -1.01 -10.36 -3.18 -4.17 -5.90 -1.81 -15.06
Overall Balance 4.7 2.60 4.06 -0.45 10.69 -0.84 13.46 -1.82 2.39 -1.30 4.73 4.00
Memorandum :
- Reserve Assets Position 129.2 135.90 137.10 137.09 146.87 144.91 144.91 139.13 136.38 130.78 137.23 137.23
In Months of Imports & Official Debt Repayment 7.3 9.76 9.66 8.77 8.64 7.76 7.76 6.97 6.41 5.73 5.90 5.90
- Current Account (% GDP) -2.7 -0.42 -0.39 -0.66 1.65 0.48 0.29 0.17 1.15 1.34 1.30 1.00

Foreign Capital Flows Official Reserve Asset

Rupiah vs Peer Countries Peers Country Interest Rate Policies

11 • Quarter I 2023
Inflation continues to fall, thus supporting economic stability
CPI Inflation Inflation Rate among Cities in Province

Inflation Expectation

Liquidity conditions in the banking industry and economy remain ample to revive ending/financing
and bolster economic growth. The bank intermediation function continues to increase, thereby
maintaining economic recovery momentum. Financial system resilience remains solid, particularly
the banking industry, in terms of capital, credit risk and liquidity
The Ratio of Liquid Assets to Deposits Money Supply

• Quarter I 2023 12
 Policy Rate (BI7DRR) and Overnight Interbank Rate Policy Rate (BI7DRR) Transmission to Prime Lending Rate (PLR)

Banking Interest Rates Credit and Deposit Developments

Banking Industry’s Capital Credit Risk (NPL)

13 • Quarter I 2023
Digital economic and financial transactions are increasing, underpinned by a fast and reliable
payment system
Electronic Money Transactions Value Digital Banking Transactions Value

Digital Banking Transactions Volume QRIS Transactions Value and Volume

ATM/Debit and Credit Card Transactions Currency in Circulation

• Quarter I 2023 14
 The national economic recovery is expected to continue in 2023
Indonesia’s GDP Projection Current Account Deficit Projection

Credit Projection

15 • Quarter I 2023
For further information:
Monetary Policy Communication Division
Policy Formulation Group
Economic and Monetary Policy Department

Tel : Contact Center BICARA (+62 21) 131

Fax : +62 21 345 2489
Email : DKEM-KKP@bi.go.id
Website : https://www.bi.go.id

• Quarter I 2023 16