Indonesia Optimistic Economy to Grow to 5.2% in 2024

TEMPO.CO, Jakarta - The Indonesian Finance Ministry projected that the country’s economy will remain strong this year, taking into account global dynamics and the potential of the domestic economy.

“Indonesia's economy is estimated to grow strongly by 5.2 percent in 2024,” the Finance Ministry’s Head of the Communications and Information Services Bureau, Deni Surjantoro, said in his official statement on Wednesday, Feb. 7.

Since the global economy is anticipated to keep slowing down this year, Deni said the government would continue to monitor the risks.

The International Monetary Fund (IMF) projected global economic growth at 3.1 percent in 2023 and 2024 in its World Economic Outlook report in January 2024.

“As for domestic factors, inflation is expected to be relatively stable. The impact of the elections on public and government consumption and the housing sector policy rolled out in the fourth quarter of 2023 will be among the factors driving growth in 2024,” Deni explained.

He also said that the state revenue or APBN would serve as a shock absorber and be aimed at accelerating the economic transformation inclusively and sustainably.

Despite the global economic slowdown and uncertainties, the Finance Ministry believed Indonesia's economic growth would be more robust and stable. Although the economy started from a high base in 2022, it managed to record strong growth of 5.04 percent (yoy) in the fourth quarter of 2023 and 5.05 percent for the whole of 2023.

AMELIA RAHIMA SARI

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