JAKARTA: Indonesia’s central bank expects the rupiah to strengthen next year and trade on average at a range of 14,600 to 15,100 per U.S. dollar, against an outlook for an average exchange rate of 14,800 to 15,200 this year, its governor said on Tuesday.

Perry Warjiyo also told a hearing with parliament’s budget committee that 2024 economic growth would accelerate to a range of 4.7% to 5.5%, from a 2023 forecast of 4.5% to 5.3%.

Warjiyo also reiterated that inflation next year would be within Bank Indonesia’s (BI) new target range of 1.5% to 3.5%. The target range for this year is 2% to 4%.

BI provided the economic indicator forecasts during the hearing to help government and lawmakers discuss the early posture of 2024 government budget.

Indonesia’s April annual inflation at 4.33%, below forecast

The rupiah is the best performing emerging Asian currency, having strengthened about 4% against the greenback so far this year.

Inflation in Southeast Asia’s largest economy jumped to almost 6% last year amid rising global food and energy prices. Price pressures have since eased after the central bank raised rates by a total of 225 basis points between August and January.

The annual inflation rate was 4.33% in April and is expected to return to BI’s target range in the next quarter.

The economy grew 5.03% in the first quarter from the same period a year earlier.