In addition, the Government has also allocated a budget to support the economic transformation of education (Rp612.2 trillion), infrastructure (Rp392.0 trillion), and health (Rp169.1 trillion). With the continuation of fiscal subsidies in the 2023 APBN to absorb high global energy and food prices, inflation will be more controlled, therefore the normalization of Bank Indonesia’s monetary policy does not have to be too tight.
Bank Indonesia policy mix in 2023 will be oriented towards maintaining stability and accelerating the national economic recovery. The focus of monetary policy normalization is to reduce inflation from the impact of fuel price adjustments in 2022 and to stabilize the rupiah from the impact of the strong US dollar due to rising global interest rates.