Bank Indonesia: Single Round Election May Help Economy Grow More than 5.1%

TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo is confident that Indonesia's economic growth will exceed 5.1 percent in 2024. His optimism stems from the likelihood that the general election will be completed in a single round, which he says will be a prominent factor contributing to economic growth.

Perry estimates that Indonesia's economy will grow by 4.7 to 5.5 percent this year.

"With one round of elections, we hope that economic growth this year will reach more than 5.1 percent," he said when attending the Mandiri Investment Forum (MIF) 2024 at the Fairmont Hotel Jakarta on Tuesday, March 5.

Perry is confident that Indonesia's economy will be the best performer in the world. He even predicts that economic growth will continue, with a forecast of 4.8 to 5.6 percent for 2025.

The central bank chief said the potential for economic growth includes exports and domestic consumption, "especially consumption by the middle and upper classes. But more than that, it also attracts investment. Not only in construction but also in non-construction".

Don’t Wait, Invest Now

To achieve this goal, he urged entrepreneurs not to delay investment any longer, as now is the right time for entrepreneurs to start. The faster the investment is realized, the higher the profits will be.

"We have seen it all. So, no more waiting, because if we invest now, the chance of making a profit will be higher than just waiting and waiting," he said.

According to Perry, Indonesia's economic cycle will continue to increase. He reminded that right now the country is still operating below its potential output.

"Indonesia will keep growing and growing. BI estimates that Indonesia will peak around 2027. There is still room for higher growth."

Annisa Febiola

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