Indonesia's Economic Growth Lower to 5.05% in Q2 of 2024, BPS Reports
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5 August 2024 18:51 WIB
TEMPO.CO, Jakarta - Statistics Indonesia (BPS) reported that Indonesia’s economic growth in the second quarter of 2024 has reached 5.05 percent year-on-year (y-o-y), slightly lower than the first quarter’s 5.11 percent.
Deputy for Balance Sheets and Statistical Analysis of BPS Muhammad Edy Mahmud said that growth remained stable as it was supported by strong economic activity.
"The manufacturing industry contributes the biggest to the growth with 0.79 percent," he said on Monday, August 5, 2024.
In addition, economic growth was also supported by the construction business sector at 0.67 percent, trade at 0.63 percent, and information and communication at 0.50 percent.
Edy explained that since the first quarter of 2019, Indonesia’s economy has grown alongside the seasonal pattern. The manufacturing industry grew supported by domestic and foreign demand. Meanwhile, the food and beverage industry is supported by Eid al-Fitr and Eid al-Adha, while the rice harvest drives the supply sector.
Previously, Macroeconomics and Financial Market Researcher at the Institute for Economic and Community Research, Faculty of Economy and Business, University of Indonesia (LPEM FEB UI) Teuku Riefky projected that the economic growth will be lower compared to the previous period.
Riefky said Indonesia’s economy will grow between 5.0 to 5.1 percent this year, led by the lack of seasonal driving factors and high domestic and global uncertainties.
On the other hand, Indonesia’s first quarter was colored by a number of events from the February general elections, the fasting period, and several holidays. These, he said, boost domestic economic activity.
Although Indonesia entered 2024 with a positive economic growth record, Riefky believed it was not a sign of fundamental economic improvement. The issue with Indonesia’s economic growth is the seasonal-driven growth which indicates structural problems.
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