Indonesia's Economic Growth Remains Strong, This Is The Reason

JAKARTA - Bank Indonesia (BI) estimates that Indonesia's economic growth in 2024 is predicted to be in the range of 4.7 percent-5.5 percent.

BI Governor Perry Warjiyo said Indonesia's economic growth remained strong. This development is driven by good domestic demand in household consumption and investment.

"Building investments are higher than forecasts, supported by the continued National Strategic Project (PSN) in a number of areas and the development of private property as a positive impact of government incentives," Perry said at a press conference, Wednesday, March 20, 2024.

According to Perry, household consumption and non-development investment are maintained, although it needs to be encouraged to continue to support the continued national economic recovery.

"It is still better if domestic demand is reflected in a number of indicators, such as the Consumer Confidence Index, the Real Sales Index, and Manufacturing PMI which are in the optimistic zone," he explained.

Meanwhile, exports of goods are predicted not yet strong in line with the decline in demand from major trading partner countries, especially for CPO, steel and coal commodities, while service exports, especially tourism, are growing strongly.

Perry said Bank Indonesia will continue to strengthen the synergy of the Government's fiscal stimulus with a macroprudential stimulus of Bank Indonesia to encourage economic growth, especially in terms of domestic demand.