Indonesia's economy grew by 5.31% in 2022, according to the IMF's forecast.

The Central Statistics Agency (BPS) reported that Indonesia's economic growth reached 5.31% throughout 2022, with a Gross Domestic Product (GDP) at constant 2010 prices valued at Rp 11,710.4 trillion, and a GDP at current prices of Rp 19,588.4 trillion.

"Cumulatively, the economic performance in 2022 strengthened compared to 2021. Annual economic growth returned to the 5% level as it was before the pandemic," said BPS Head Margo Yuwono in a virtual press conference on Monday (6/2/2023).

"All leading sectors, namely the trade, mining, agriculture, and construction industries, continued their positive trend and experienced impressive growth," said Margo.

"The business sectors with the highest growth were transportation and warehousing, as well as accommodation and food and beverage, driven by increased public mobility and an increase in visits from both foreign and domestic tourists," he continued.

This BPS report is in line with the International Monetary Fund (IMF) projection in the World Economic Outlook (WEO) January 2023 edition, which predicted that the Indonesian economy would grow in the range of 5.3% in 2022.

However, the IMF estimates that Indonesia's growth in 2023 will slow to 4.8%.

The IMF did not detail the factors that would burden Indonesia's growth. However, in general, the IMF assesses that this year there are a number of risks looming over the global economy, one of which is the condition of China, which is feared to not yet be able to recover from the impact of the Covid-19 pandemic.

"With still low population immunity and inadequate hospital capacity, especially outside major cities, health issues could hinder China's recovery," said the IMF in the January 2023 WEO edition.

"This could affect various parts of the world, especially due to decreased demand and supply chain problems," it continued.

Decreased demand from China certainly has the potential to disrupt Indonesia's economic growth. Because they are the largest non-oil and gas export market.

Throughout 2022, Indonesia exported non-oil and gas commodities worth USD 63.5 billion to China, while the value of exports to other countries was much lower.