- Despite the slowing consumption growth, the Indonesian economy continues to move from strength to strength thanks to the continuing trend of outsized trade surplus throughout Q1 2023.
- Bank Indonesia’s macroprudential policies and intervention in the domestic bond market allow consumers to fulfil their demand for big-ticket items. However, tighter credit conditions amidst dwindling liquidity may eventually discourage further purchases.
- The government should have enough fiscal room to provide a boost to the macroeconomic condition should the domestic economy falls to its nadir in 2023.
