Indonesia central bank sees higher inflation in 2024 over rising food, energy prices

JAKARTA : Indonesia’s central bank (BI) sees 2024 headline inflation at 3.20 per cent, above than the previous forecast of 2.8 per cent, due to higher global food and energy prices, its governor said on Monday.

Perry Warjiyo made the remarks in a parliamentary hearing discussing BI’s budget for next year.

“We will ensure monetary policies, whether through interest rate policy and the rupiah exchange rate, will support (our ways to) manage inflation,” he said.

The governor also saw 2024 economic growth at 5.00 per cent, attributed to government spending, such as the upcoming election in February and development of the new capital Nusantara.

BI also sees the average rupiah exchange rate at 15,510 against U.S. dollar in 2024 versus outlook for 2023 at 15,280 due to ongoing uncertainty in global financial market.