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

i • Quarter II 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 II 2023 ii
Executive Summary
Global economic uncertainty remains high. Global to revive lending/financing. The bank intermediation
economic growth prospect in 2023 remains at 2.7%, moderated on weaker corporate demand for loans.
accompanied by a rebalancing in the sources of growth. Financial system resilience remains solid, particularly the
Growth in the United States (US) and several advanced banking industry. Digital economic and financial
economies in Europe are projected to pick up on the back transactions continue to perform solidly, supported by a
of household consumption in response to increasing secure, uninterrupted and reliable payment system.
wages and consumer confidence. Robust economic
The BI Board of Governors Meeting agreed on 24th and
growth is expected to persist in Japan given improving
25th July 2023 to hold the BI 7-Day Reverse Repo Rate
household consumption and export performance.
(BI7DRR) at 5.75%, while also maintaining the Deposit
Meanwhile, slower economic growth in China is
Facility (DF) rate at 5.00% and Lending Facility (LF) rate at
consistent with restrained consumption and investment,
6.50%. The decision to maintain the BI7DRR rate at 5.75%
particularly in the property sector. Inflationary pressures
is consistent with the monetary policy stance to control
in advanced economies remain comparatively high due to
inflation within the 3.0%±1% target this year and
stronger economic growth and tight labour markets. This
is expected to trigger further monetary policy rate hikes in 2.5%±1% in 2024. The policy focus is oriented towards
advanced economies, including the Federal Funds Rate strengthening rupiah stability to manage imported
inflation and mitigate the contagion effect of global
(FFR). Consequently, capital flows to emerging economies
financial market uncertainty. Bank Indonesia is
become more selective, thus intensifying currency
strengthening accommodative liquidity and
pressures in emerging economies, including Indonesia,
macroprudential policies to revive lending/financing with
and necessitating a strong policy response to mitigate
a focus on downstreaming, housing, tourism as well as
global contagion risk.
green and inclusive finance. Furthermore, Bank Indonesia
Economic growth in Indonesia remains solid, supported is also accelerating payment system digitalization to
by domestic demand. Indonesia's Balance of Payments expand digital economic and financial inclusion. The Bank
(BOP) continues to support external resilience. Rupiah Indonesia monetary, macroprudential and payment
exchange rates remain under control in line with the system policy mix will remain directed towards supporting
stabilization measures implemented by Bank Indonesia. sustainable economic growth.
Inflation returned to the target earlier than previously
projected. Liquidity in the banking industry remains ample

1 Triwulan I 2020
CHAPTER 1

Global and Domestic

Economic Developments
Global economic uncertainty remains high. Global developing economies, including Indonesia, and
economic growth prospect in 2023 remains at 2.7%, necessitating a strong policy response to mitigate global
which is nevertheless accompanied by a rebalancing in contagion risk.
the sources of growth. Growth in the United States (US)
At home, economic growth in Indonesia remains solid,
and several advanced economies in Europe is projected to
pick up on the back of household consumption in supported by domestic demand. The domestic economy
in the second quarter of 2023 is expected to outperform
response to increasing wages and consumer confidence.
Robust economic growth is expected to persist in Japan the previous projection, underpinned by higher
given improving household consumption and export household consumption and investment. Greater
mobility, improving income expectations, controlled
performance. Meanwhile, slower economic growth in
inflation as well as the positive impact of national
China is consistent with restrained consumption and
religious holidays (HBKN) and 13th month salary bonuses
investment, particularly in the property sector.
disbursed to civil servants boosted household
Inflationary pressures in advanced economies remain
consumption. Investment also increased, particularly
comparatively high due to stronger economic growth and
tight labour markets. This is expected to trigger further non-building investment in line with positive export
monetary policy rate hikes in advanced economies, performance and ongoing downstreaming efforts.
including the Federal Funds Rate (FFR). Consequently, Meanwhile, exports of goods are expected to decelerate
capital flows to developing economies will become more in line with global economic moderation, contrasting high
growth of services exports caused by a surge of inbound
selective, thus intensifying currency pressures in

• Quarter II 2023 2
international travellers. By sector, the main contributors rating agency from a stable to positive outlook, with a
to economic growth include the Manufacturing Industry, BBB+ rating (a full two notches above the lowest
Wholesale and Retail Trade as well as Information and investment grade category). Bank Indonesia will also
Communication. Spatially, national economic growth was continue strengthening rupiah stabilisation policy through
primarily driven by strong growth in the Kalimantan and triple intervention and the twist operation to mitigate the
Java regions on maintained domestic demand. contagion risk of global financial market uncertainty.
Consequently, national economic growth in 2023 is
projected in the 4.5-5.3% range. Bank Indonesia will Inflation returned to the target earlier than previously
continue strengthening synergy between the fiscal stimuli projected. Consumer Price Index (CPI) inflation in June
2023 stood at 3.52% (yoy), which is within the 3.0%±1%
of the Government and macroprudential stimuli of Bank
target corridor. Milder inflationary pressures were
Indonesia to revive economic growth, particularly on the
observed across all components. Core inflation in June
demand side.
2023 was recorded at 2.58% (yoy), lower than 2.66% (yoy)
Indonesia's Balance of Payments (BOP) continues to the month earlier in line with stable exchange rates, lower
support external resilience. The trade balance in the international commodity prices, a weak knock-on effect of
second quarter of 2023 recorded a narrower surplus due volatile food inflation and controlled inflation
to lower international commodity prices and global expectations. Volatile food (VF) inflation decreased to
economic moderation. Meanwhile, global financial 1.20% (yoy) in June 2023 from 3.28% (yoy) one month
market uncertainty triggered a net capital outflow in the earlier, while administered prices (AP) inflation also fell
form of portfolio investment totalling USD1.3 billion in from 9.52% (yoy) to 9.21% (yoy) in the reporting period.
the second quarter of 2023. Notwithstanding, a net Lower inflation within the target range is the positive
inflow of USD0.3 billion has been recorded thus far in the outcome of monetary policy consistency and close
third quarter of 2023 (as of 21st July 2023). At the end of synergy to control inflation between Bank Indonesia and
June 2023, the position of reserve assets remained high at the (central and regional) Government through the
USD137.5 billion, equivalent to 6.1 months of imports or Central and Regional Inflation Control Teams (TPIP and
6.0 months of imports and servicing government external TPID) as well as the National Movement for Food Inflation
debt, which is well above the international adequacy Control (GNPIP) in various regions. Bank Indonesia,
standard of around 3 months of imports. Looking ahead, therefore, is confident that inflation will remain under
BOP performance in 2023 is forecast to remain sound, control in the 3.0%±1% target this year and 2.5%±1% in
supported by a manageable current account maintained 2024.
in the range of a 0.4% surplus to a 0.4% deficit of GDP. In
Liquidity in the banking industry remains ample to revive
addition, the capital and financial account will be
lending/financing. In line with the accommodative
maintained on the back of foreign capital inflows in the
liquidity policy stance of Bank Indonesia, the ratio of
form of foreign direct investment (FDI) and portfolio
liquid assets to third-party funds was still high in June
investment in line with positive investor perception
2023 at 26.73%. Ample liquidity is having a positive
concerning the national economic outlook.
impact on interest rates in the banking industry. In the
Rupiah exchange rates remain under control in line with money market, the IndONIA rate as of 24th July 2023
the stabilisation measures implemented by Bank remained low at 5.61%. In the bond market, the yield of
Indonesia. Year to date, the rupiah has gained 3.63% short-term SBN was recorded at 5.99%, while long-term
(ptp) in value from the position recorded at the end of yields stood at 6.22% on the same date. In the banking
December 2022, thereby exceeding the Philippine peso industry, the 1-month term deposit rate and average
(1.78%), Indian rupee (1.11%) and Thai baht (0.04%). lending rate in June 2023 were also recorded low at
Moving forward, as global financial market uncertainty 4.14% and 9.34% respectively. Bank Indonesia will
subsides, Bank Indonesia expects rupiah appreciation to continue ensuring adequate liquidity to maintain financial
persist, fostered by solid economic growth, low inflation, system stability and revive lending/financing for a faster
attractive yields on domestic financial assets for national economic recovery.
investment and the positive impact of implementing
The bank intermediation moderated on weaker
Government Regulation 66/2023 concerning the foreign
exchange proceeds of natural resources exports (DHE corporate demand for loans. Amid loose supply-side
SDA). Investor perception concerning the national conditions due to ample liquidity, high loan disbursement
economic outlook is also improving, as reflected by an plans and loose lending standards in the banking industry,
upgrade to Indonesia's sovereign credit rating by the R&I the corporate sector is accelerating loan repayments
while maintaining a wait-and-see attitude in terms of

3 • Quarter II 2023
increasing future investment plans. Growth of loans System Stability Committee to mitigate various domestic
disbursed by the banking industry in June 2023 was and global macroeconomic risks that could undermine
recorded at 7.76% (yoy), primarily supported by financial system resilience and economic recovery
Corporate Services, Social Services and Mining. momentum.
Intermediation in the sharia banking industry increased
17.09% (yoy) in June 2023. In the MSME segment, the Digital economic and financial transactions continue to
growth trend was maintained, achieving 7.34% (yoy) in perform solidly, supported by a secure, uninterrupted
June 2023. Bank Indonesia remains committed to and reliable payment system. The value of electronic
stimulating bank lending/financing on the supply side to money transactions in the second quarter of 2023
increased 14.82% (yoy) to reach Rp111.35 trillion, while
accelerate sustainable economic growth. To that end,
the value of digital banking transactions grew 11.6% (yoy)
macroprudential liquidity incentive policy is focused on
to Rp13,827 trillion. The value of QRIS transactions
sectors with a stronger multiplier effect on economic
continues to enjoy strong 104.64% (yoy) growth,
growth and job creation, particularly in downstream
amounting to Rp49.65 trillion, with users and merchants
sectors (mineral and coal mining, agriculture, livestock
totalling 37.0 million and 26.7 million respectively,
and fishing), housing (including affordable housing),
dominated by MSMEs. Bank Indonesia continues
tourism, inclusive sectors (including MSME loans, People's
Business Loans (KUR) and ultra-micro loans) as well as the accelerating payment system digitalisation for greater
green economy and finance. Bank Indonesia projects economic and financial inclusion and cross-border
cooperation. Meanwhile, the value of card-based
credit growth in 2023 in the 9-11% (yoy) range.
payments using ATM, debit and credit cards reached
Financial system resilience remains solid, particularly the Rp2,115.57 trillion in the reporting period, with growth of
banking industry. The Capital Adequacy Ratio (CAR) in 3.0% (yoy). In terms of rupiah currency management,
the banking industry was still high in May 2023 at 26.07%. total currency in circulation in the second quarter of 2023
Credit risk was also mitigated effectively, as reflected by grew 8.74% (yoy) to Rp992.2 trillion. Bank Indonesia
low NPL ratios of 2.52% (gross) and 0.77% (nett) in May continues ensuring the availability of rupiah currency fit
2023. Liquidity in the banking industry in June 2023 was for circulation in all regions of the Republic of Indonesia,
maintained, supported by 5.79% (yoy) growth of third- which includes maintaining institutional cooperation to
party funds (TPF). BI stress tests further confirmed solid circulate the rupiah in 3T (outermost, frontier, remote)
bank resilience in Indonesia. Meanwhile, Bank Indonesia regions through mobile cash services, cash deposit
will continue strengthening synergy with the Financial services and the Sovereign Rupiah Expedition.

• Quarter II 2023 4
CHAPTER 2

Bank Indonesia Policy

Response
The BI Board of Governors Meeting agreed on 24th and system policy mix will remain directed towards supporting
25th July 2023 to hold the BI 7-Day Reverse Repo Rate sustainable economic growth.
(BI7DRR) at 5.75%, while also maintaining the Deposit
Bank Indonesia, therefore, has strengthened its policy mix
Facility (DF) rate at 5.00% and Lending Facility (LF) rate at
response to maintain stability and revive growth as
6.50%. The decision to maintain the BI7DRR rate at 5.75%
is consistent with the monetary policy stance to control follows:
inflation within the 3.0%±1% target this year and 1. Strengthening rupiah stabilisation policy through: (i)
2.5%±1% in 2024. The policy focus is oriented towards foreign exchange market intervention, including spot
strengthening rupiah stability to manage imported and Domestic Non-Deliverable Forward (DNDF)
inflation and mitigate the contagion effect of global transactions, as well as buying/selling government
financial market uncertainty. Bank Indonesia is securities (SBN) in the secondary market, and (ii) the
strengthening accommodative liquidity and twist operation by selling short-term SBN in the
macroprudential policies to revive lending/financing with secondary market to increase the attractiveness of
a focus on downstreaming, housing, tourism as well as SBN yields for foreign portfolio investment inflows.
green and inclusive finance. Furthermore, Bank Indonesia 2. Issuing regulations concerning instruments to
is also accelerating payment system digitalisation to repatriate the foreign exchange proceeds of natural
expand digital economic and financial inclusion. The Bank resources exports into the Indonesian financial
Indonesia monetary, macroprudential and payment system based on three governing principles, namely:
(i) compliance with the provisions contained in

5 • Quarter II 2023
 Government Regulation No. 36 of 2023, (ii) leveraging on value per transaction progressively as follows:
the foreign exchange proceeds of natural resources (a) transactions up to Rp100,000 (one hundred
exports for domestic purposes, (iii) the types of thousand rupiah) subject to 0% MDR, and (b)
instruments permitted remain in compliance with transactions exceeding Rp100,000 (one hundred
principles (i) and (ii), as well as in accordance with thousand rupiah) subject to 0.3% MDR, effective
economic and financial market developments. based on industry system readiness from 1st
3. Strengthening macroprudential policy stimuli to September and 30th November 2023 at the
revive bank lending through implementation of latest.
Macroprudential Liquidity Incentive Policy (KLM) for ii. Accelerating QRIS by expanding the innovative
Conventional Commercial Banks and Sharia features of QRIS Tuntas (cash withdrawals and
Banks/Business Units, effective from 1st October deposits) as well as expanding cross-border QRIS
2023, as follows: payments.
i. Honing the liquidity incentives for banks iii. Hosting National QRIS Week and the Indonesia
disbursing loans/financing to downstream Sovereign Rupiah Festival (FERBI) to celebrate RI
mineral and coal mining sectors and downstream Independence Day.
non-mineral and coal mining sectors (including
agriculture, livestock and fishing), housing Policy coordination with the (central and regional)
(including affordable housing), tourism, inclusive Government and strategic partners is also strengthened
constantly. To that end, coordination within the Central
sectors (including MSMEs, People's Business
and Regional Inflation Control Teams (TPIP and TPID) is
Loans (KUR) and ultra-micro enterprises) as well
maintained by strengthening the National Movement for
as the green economy and finance.
Food Inflation Control (GNPIP) in various regions.
ii. Increasing the total incentive up to a maximum
Furthermore, policy synergy between Bank Indonesia and
of 4% from 2.8% previously, consisting of: (a)
the Financial System Stability Committee is also
incentives for disbursing loans/financing to
strengthened to maintain macroeconomic and financial
specific sectors determined by Bank Indonesia up
sector stability, while reviving lending/financing to priority
to a maximum of 2% from 1.5% previously, (b)
sectors to support downstreaming (mineral and coal
incentives for banks disbursing inclusive
mining, agriculture, livestock and fishing) housing,
loans/financing to 1.5% from 1%, comprising 1%
tourism, inclusive sectors (MSMEs, People's Business
for disbursing MSME/KUR loans and 0.5% for
Loans (KUR) and ultra-micro enterprises) as well as the
ultra-micro loans, and (c) incentives for
green economy and finance. Bank Indonesia also
disbursing green loans/financing up to a
strengthens international cooperation with other central
maximum of 0.5% from 0.3% previously.
iii. Implementing Macroprudential Liquidity banks and authorities in partner countries, while
Incentive Policy by reducing the reserve balances promoting trade and investment in priority sectors in
held at Bank Indonesia required to meet average collaboration with relevant institutions. In addition, Bank
rupiah reserve requirements (RR). Indonesia is also strengthening synergy with relevant
government ministries/agencies to ensure a successful
4. Continuing prime lending rate (PLR) transparency
ASEAN Chairmanship in 2023, particularly in terms of the
policy with a focus on interest rates in downstream
finance track.
sectors.
5. Honing the payment system digitalisation strategy to
expand digital economic and financial inclusion by:
i. Strengthening the QRIS Merchant Discount Rate
(MDR) for the micro-enterprise segment based

• Quarter II 2023 6
 Global economic uncertainty remains high
Global GDP Growth Global PMI

Consumer Confidence Index Retail Sales

Commodity Prices Global Uncertainty Index

7 • Quarter II 2023
10 Yr UST & JGB Yield and DJIA Index US Dollar Performance and Risk Perception Indicators on EM

Emerging Market Capital Flow

At home, economic growth in Indonesia remains solid, supported by domestic demand

Economic Growth – Expenditure Side Economic Growth – Economic Sectors Side
2021 2022 2023
2021 2022 2023 Components 2020
I II III IV
2021
I II III IV
2022
I
Components 2020 2021 2022 Agriculture, Forestry, and Fisheries 1.77 3.48 0.56 1.44 2.33 1.87 1.16 1.68 1.95 4.51 2.25 0.34
I II III IV I II III IV I
Mining and excavation -1.95 -2.02 5.22 7.78 5.15 4.00 3.82 4.01 3.22 6.46 4.38 4.92
Household Consumption -2.63 -2.21 5.96 1.02 3.56 2.02 4.34 5.51 5.39 4.48 4.93 4.54 Manufacture -2.93 -1.38 6.58 3.68 4.92 3.39 5.07 4.01 4.83 5.64 4.89 4.43
Electricity and Gas Procurement -2.34 1.68 9.09 3.85 7.81 5.55 7.04 9.33 8.05 2.31 6.61 2.67
Non-Profit Institution Serving Water Supply 4.94 5.46 5.78 4.56 4.14 4.97 1.35 4.46 4.26 2.84 3.23 5.69
-4.21 -3.65 4.06 2.87 3.20 1.62 5.90 5.02 5.97 5.70 5.64 6.17
Household (NPISH) Construction -3.26 -0.79 4.42 3.84 3.91 2.81 4.83 1.02 0.63 1.61 2.01 0.32
Government Consumption 2.12 2.57 8.22 0.65 5.29 4.24 -6.62 -4.63 -2.55 -4.77 -4.51 3.99 Wholesale Retail, Car and Motorcycle Repairs -3.79 -1.28 9.50 5.12 5.54 4.63 5.73 4.43 5.37 6.55 5.52 4.89
Transportation and Warehousing -15.05 -13.09 25.10 -0.72 7.93 3.24 15.79 21.27 25.80 16.99 19.87 15.93
Investment (GFCF) -4.96 -0.21 7.52 3.76 4.49 3.80 4.08 3.09 4.98 3.33 3.87 2.11 Provision of Accomodation, Food and Beverages -10.26 -7.28 21.54 -0.14 4.98 3.89 6.58 9.80 17.83 13.81 11.97 11.55
Information and Communication 10.61 8.72 6.90 5.54 6.24 6.82 7.15 8.06 6.95 8.75 7.74 7.19
Building Investment -3.78 -0.74 4.36 3.36 2.48 2.32 2.58 0.92 0.07 0.11 0.91 0.08 Financial Services and Insurance 3.25 -2.97 8.33 4.29 -2.59 1.56 1.64 1.50 0.87 3.76 1.93 4.48
Real Estate 2.32 0.94 2.82 3.42 3.94 2.78 3.78 2.16 0.63 0.39 1.72 0.37
NonBuilding Investment -8.44 1.44 18.50 4.96 10.40 8.42 8.63 9.71 19.32 12.11 12.53 7.93
Corporate Services -5.44 -6.10 9.94 -0.59 0.89 0.73 5.96 7.92 10.79 10.42 8.77 6.37
Exports -8.42 2.17 28.41 20.74 22.24 17.95 14.22 16.40 19.41 14.93 16.28 11.68 Government Administration, Defence and Compulsory Social Security -0.03 -2.24 9.94 -9.95 0.99 -0.33 -1.29 -1.52 12.48 1.78 2.52 2.09
Education Services 2.61 -1.54 5.88 -4.43 0.72 0.11 -1.41 -1.06 4.46 0.42 0.59 1.02
Imports -17.60 5.21 33.20 31.08 32.61 24.87 16.04 12.72 25.37 6.25 14.75 2.77 Health Services and Other Social Activities 11.56 3.38 11.68 14.04 12.16 10.45 4.52 6.50 -1.71 2.47 2.74 4.77
Other Services -4.10 -5.15 11.97 -0.30 3.35 2.12 8.25 9.26 9.13 11.14 9.47 8.90
GDP -2.07 -0.69 7.08 3.53 5.03 3.70 5.02 5.46 5.73 5.01 5.31 5.03 GDP -2.07 -0.69 7.08 3.53 5.03 3.70 5.02 5.46 5.73 5.01 5.31 5.03

• Quarter II 2023 8
 Growth of Regional Economic (GDRP) of the First Quarter of Consumer Confidence Index
2023

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 Juni 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 1,369.2
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 1,369.1
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 1,067.4
2. NonTax Income 343.8 116.9% 298.2 458.3 335.6 481.6 595.2 441.4 301.7
II. Grant 18.8 1448.7% 0.9 4.5 0.6 0.6 5.6 0.4 0.1
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 1,250.9
I. Central Government Expenditures 1,833.0 92.8% 1,954.5 1,987.9 1,944.5 2,301.6 2,279.2 2,246.5 887.4
1. Employee Spending 380.5 94.3% 421.1 387.7 426.5 426.5 402.4 442.6 227.2
2. Spending for Goods 422.3 154.6% 362.5 529.6 339.7 339.7 426.0 387.0 147.6
3. Capital Expenditures 190.9 139.0% 246.8 228.6 199.2 199.2 240.4 199.1 62.0
4. Payment of Debt Obligations 314.1 92.7% 373.3 343.5 405.9 405.9 386.3 441.4 211.8
5. Subsidies 196.2 102.2% 175.4 241.0 207.0 283.7 252.8 298.5 95.8
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 73.6
8. Other Expenditures 120.0 26.6% 207.3 79.5 214.0 494.4 403.9 329.3 69.3
II. Transfer to Regions and Village Funds 762.5 99.8% 795.5 785.7 769.6 804.8 816.2 814.7 290.3
1. Transfer to Regions 691.4 99.8% 723.5 713.9 701.6 736.8 748.3 744.7 263.0
2. Village Funds 71.1 99.9% 72.0 71.9 68.0 68.0 67.9 70.0 27.3
C. Primary Balance (633.6) (633.1) (420.5) (462.2) (434.4) (46.4) (156.8) 330.2
D. Budget Surplus/Deficit (947.7) (1,006.4) (764.0) (868.0) (840.2) (460.1) (598.2) 118.4
Surplus/Deficit (%GDP) (6.1) (5.7) (4.5) (4.9) (4.5) (2.3) (2.8) 0.6

9 • Quarter II 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 II 2023 10
 Indonesia's Balance of Payments (BOP) continues to support external resilience. Rupiah exchange
rates remain under control in line with the stabilisation measures implemented by Bank Indonesia
Indonesia’s Balance of Payments Trade Balance
Items (Billion USD) 2021 2022* 2023
2019 2020
I II III IV Total I II III IV Total I**
Current Account -30,3 -4,43 -1,09 -1,93 4,95 1,52 3,46 0,55 3,85 4,54 4,18 13,13 2,97
A. Goods 3,5 28,30 7,63 8,34 15,41 12,43 43,81 11,30 16,80 17,62 16,95 62,67 14,72
- Exports, fob 168,5 163,40 49,38 54,32 61,65 67,49 232,84 66,77 75,17 77,84 72,76 292,54 67,32
- 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 -52,61
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 19,02
b. Oil and Gas -10,3 -5,39 -2,27 -3,14 -2,51 -5,04 -12,97 -5,69 -7,19 -6,48 -5,42 -24,78 -3,96
B. Services -7,6 -9,76 -3,39 -3,71 -3,60 -3,96 -14,65 -4,38 -5,02 -5,41 -5,49 -20,31 -4,62
C. Primary Income -33,8 -28,91 -6,75 -8,02 -8,27 -8,91 -31,96 -7,87 -9,45 -9,07 -9,21 -35,60 -8,60
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 1,47
Capital and Financial Account 36,60 7,92 5,77 1,66 6,90 -2,10 12,23 -1,81 -1,38 -5,56 0,33 -8,42 3,38
1. Direct Investment 20,5 14,14 4,49 5,40 3,38 3,84 17,11 4,54 3,33 3,41 3,16 14,44 3,40
2. Portfolio Investment 22,0 3,37 4,90 3,99 1,20 -5,02 5,07 -3,18 -0,45 -3,12 -1,72 -8,48 3,01
3. Other Investment -6,1 -9,64 -3,73 -7,76 2,14 -1,01 -10,36 -3,31 -4,18 -5,86 -1,54 -14,89 -3,24
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 6,52
Memorandum :
- Reserve Assets Position 129,2 135,90 137,10 137,09 146,87 144,91 144,91 139,13 136,38 130,78 137,23 137,23 145,19
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 6,21
- Current Account (% GDP) -2,7 -0,42 -0,39 -0,66 1,65 0,48 0,29 0,18 1,14 1,34 1,27 0,99 0,89

Foreign Capital Flows Official Reserve Asset

Rupiah vs Peer Countries Peers Country Interest Rate Policies

11 • Quarter II 2023
Inflation returned to the target earlier than previously projected
CPI Inflation Inflation Rate among Cities in Province

Inflation Expectation

Liquidity in the banking industry remains ample to revive lending/financing. The bank
intermediation moderated. Financial system resilience remains solid, particularly the banking
industry
The Ratio of Liquid Assets to Deposits Money Supply

• Quarter II 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 II 2023
Digital economic and financial transactions continue to perform solidly, supported by a secure,
uninterrupted 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 II 2023 14
 The national economic recovery is expected to continue in 2023
Indonesia’s GDP Projection Current Account Deficit Projection

Credit Projection

15 • Quarter II 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 II 2023 16