Indonesia Projects 5.2 Percent Economic Growth in 2024

Jakarta – Finance Minister Sri Mulyani Indrawati has expressed belief that Indonesia’s economy will remain strong with a growth rate of 5.2 percent in 2024.

 

“Based on global dynamics and domestic economic potential, Indonesia’s economy is estimated to grow strongly in 2024, amounting to 5.2 percent,” she noted in a statement from her ministry on Wednesday.

 

In the January edition of the World Economic Outlook, the International Monetary Fund (IMF) estimated global economic growth of 3.1 percent in 2023 and 2024.

 

Indrawati said that domestic inflation is expected to be relatively stable due to the 2024 general elections’ impact on public and government spending. Housing sector policies started in the fourth quarter of 2023 will be one of the driving forces in 2024.

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In line with this, the 2024 State Budget will be utilized to reduce external turmoil and accelerate economic transformation in an inclusive and sustainable manner, she remarked.

 

She highlighted Indonesia’s economy in 2023, which grew positively amid the projected slowdown in the global economy.

 

Indonesia’s economy grew by 5.04 percent (year-on-year/yoy) in the fourth quarter of 2023 and 5.05 percent yoy for the whole of 2023, supported by strong demand, particularly in consumption and investment.

 

Public consumption increased by 4.47 percent in the fourth quarter of 2023 and grew by 4.82 percent throughout 2023.

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Growth in Gross Fixed Capital Formation (PMTB) or investment was recorded at 5.02 percent in the fourth quarter of 2023 and 4.4 percent in the whole year, an increase from 3.9 percent in 2022, she pointed out.

 

Positive growth was also recorded in business sectors, with manufacturing, trade, agriculture, and mining sectors contributing most, Indrawati stated.

 

The manufacturing sector grew positively by 4.07 percent in the fourth quarter and by 4.64 percent throughout 2023. Strong domestic and global demand for Indonesia’s export products supported the growth of this sector.

 

The trade sector also grew positively by 4.09 percent in the fourth quarter and recorded a growth of 4.85 percent in 2023, driven by an increase in the trade activity of domestic goods and motorbike sales.

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Amid changes in weather due to the El Nino phenomenon, Indrawati stated that the agricultural sector demonstrated moderate growth of 1.12 percent in the fourth quarter of 2023 and 1.30 percent throughout 2023.

 

Amid moderation in commodity prices, the mining sector also grew stronger in the fourth quarter of 2023 by 7.46 percent and 6.12 percent in 2023. This growth was supported by the metal ore mining sub-sector as the demand for processed nickel increased.

 

Anang Fadhilah