The Indonesian government targets economic growth of 5.3% to 5.9% in 2023.

The international rating agency Standard and Poor's (S&P) maintained Indonesia's credit rating at BBB (investment grade) and upgraded Indonesia's outlook to stable from negative.

In its report, S&P stated that the improvement of Indonesia's outlook to stable is based on the improvement of Indonesia's external economic position, and the government's gradual fiscal policy consolidation. This step was taken due to S&P's confidence in the continued recovery of the Indonesian economy for the next two years.

In the 2022 State Budget (APBN), the government targets Indonesia's economic growth at 5.2%. This figure is higher than last year's economic growth of 3.69%.

In 2023, the government targets national economic growth in the range of 5.3 to 5.9%. This target was announced by the Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa, at the Central Development Coordination Meeting (Rakorbangpus) during the preparation of the 2023 National Work Plan (RKP) on Thursday (21/4/2022).

In his statement, the Minister of National Development Planning/Head of Bappenas said that productivity issues and mitigation of the scarring effect from the Covid-19 pandemic remain challenges for Indonesia's economic recovery next year. Therefore, the 2023 National Work Plan (RKP) carries the theme of "Productivity Improvement for Inclusive and Sustainable Economic Transformation".

("Read: World Bank Cuts Indonesia's 2022 Economic Growth Projection to 5.1%")

"With increased productivity, hopefully we can increase potential output so that our economic trajectory returns sustainably," said Minister of National Development Planning/Head of Bappenas Suharso Monoarfa at the 2022 Central Development Coordination Meeting (Rakorbangpus), as reported on the Bappenas.go.id portal, Thursday (21/4/2022).

In the 2023 RKP, the Government targets:

* Economic Growth: 5.3-5.9%
* Poverty rate reduction to: 7.5-8.5%
* Open unemployment rate reduction to: 5.3-6.0%
* Gini ratio reduction to: 0.375-0.378
* Human Development Index increase to: 73.31-73.49
* Greenhouse gas emission reduction of 27.02%
* Farmer exchange rate: 103-105
* Fishermen exchange rate: 106-107

To achieve the 2023 economic growth target, consumption will be driven to grow by 5.2 to 5.4%. Investment must also be driven to grow high, and exports must also be driven to grow by 6.0 to 7.3% next year.