Indonesia, 02 Dec 2021 - The spread of vaccinations, the government's fiscal and financial policies, as well as strong structural growth are expected to boost Indonesia's economic growth in the coming year. Bank DBS Indonesia through DBS Treasures and Manulife Aset Manajemen Indonesia (MAMI) presented a market outlook titled “2022 Leap Ahead: Economy Reopening & Strategic Sector Rotation” to provide insight into investment opportunities for customers. This session presented Special Staff of the Minister of Finance of the Republic of Indonesia, Yustinus Prastowo, Senior Economist of DBS, Radhika Rao, Chief Economist & Investment Strategist of Manulife Asset Management Indonesia, Katarina Setiawan and Special Staff of the Ministry of Finance, Titik Anas as the keynote speakers. Director of Consumer Banking PT Bank DBS Indonesia, Rudy Tandjung. Bank Indonesia's optimism regarding the projection of Indonesia's economic growth in 20221 , which ranges from 4.7%-5.5%, was welcomed by Bank DBS Indonesia. Senior Economist of DBS Bank, Radhika Rao , explained DBS Bank's view regarding this matter, “There are three important things that can trigger the increase of Indonesia's economic growth in 2022. First, Indonesia is predicted to be successful in vaccinating most of the adult population by March 2022. Second, the likelihood that Indonesia will be able to attract more investments and shift into more downstream commodity sectors as well as accelerate digitalisation, will help to return to a more durable and stable growth path. Third, Indonesia’s favourable fiscal track record and upcoming measures to lift the tax to GDP ratio are likely to add to the existing strength of debt ratio compared to the majority of countries in Asia.”Special Staff of the Minister of Finance for Strategic Communication at the Ministry of Finance, Yustinus Prastowo , revealed that the approval of basic macroeconomic assumptions in the 2022 State Revenue and Expenditure Budget Draft (RAPBN) became the benchmark for the Indonesian government in welcoming the economy in 2022. He explained, “There are four important points agreed upon by the government and the DPR which will be the basis for determining the RAPBN. First, the economic growth was agreed to be in the range of 5.2% to 5.5%. Second, the inflation rate is set at 3%. Third, the rupiah exchange rate is determined to be no more than Rp14,350 per US dollar, and finally, the interest rate for Government Bonds (SUN) 10 in 2022 is set at 6.8%.”Chief Economist & Investment Strategist Manulife Aset Manajemen Indonesia, Katarina Setiawan , said, “Indonesia and ASEAN-4 countries (Indonesia, Malaysia, the Philippines and Thailand) will experience growth in 2022. This is in contrary to the normal condition in the US and other parts of Asia. As a major producer of the world's top commodities, Indonesia provides natural hedge to spare the economy in the midst of inflation hikes. Indonesia also has sound structural stories, different to other Asia countries who have increased debt ratio and numbers of older generations. Some of these things have attracted investments in Indonesia, amid the diversification trends triggered by geopolitics and pandemic issues.”Live More Bank Less , where Bank DBS Indonesia is committed to providing a joyful banking experience for its customers.”
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