Bank Indonesia sees the national economy's improvement will continue and be encouraged by the global economy, vaccinations, and strengthened policy synergies.

Indicators in February signaled ongoing improvement amidst increased, albeit limited, community mobility.

"Exports continue to increase, specially manufactured commodities such as steel, metal ore, organic chemicals, and electric machines, in line with the increasing demand for major trading partner countries. Spatially, export performance occurs in some regions, such as Sulawesi, Maluku, Papua, Java, and Sumatra," said the Governor of Bank Indonesia (BI), Perry Warjiyo, in Jakarta, on Thursday (18/3).

According to Perry, consumer confidence and retail sales have also shown improvement.

"The acceleration of vaccines carried out by the government and public discipline in health protocols will support the recovery of the national economy," he explained.

To boost domestic demand, BI  strengthened policy synergies. First, the opening of safe, productive sectors such as motor vehicles, property, and food.

Second, accelerated fiscal stimulus from both the central and regional levels. Third, bank lending from the demand side. Fourth, the continuation of the monetary and macroprudential stimulus pursued by BI and finally accelerating the payment system's digitalization.

"With these developments, economic growth is expected to increase by between 4.3% and 5.3%," said Perry.

The prediction is the same as last month's BI monetary policy meeting result. This figure is lower than BI's initial projection of 4.8 to 5.8%.