Indonesia: Inflation seen higher vs. lower GDP – UOB

Economist at UOB Group Enrico Tanuwidjaja reviews the prospects for inflation and GDP in Indonesia for the current year.

Key Takeaways

“Higher energy and basic raw food prices resulting from the Russia-Ukraine ongoing tensions will result into higher inflation in Indonesia.”

“Higher inflation, in turn, will be growth-negative and hence affecting our 2022 forecast.”

“We revised our 2022 inflation forecast to 3.3% from 2.4% previously, and our growth estimate range is now revised lower to 4.6-5.0% (mid-point of 4.8%) from 4.7-5.3% (mid-point of 5%) before.”