KSSK Optimistic Economic Growth 2024 To 5.2 Percent

JAKARTA - The Financial System Stability Committee (KSSK) estimates that Indonesia's economic growth in 2024 will continue to grow 5 percent to 5.2 percent.

This is based on the results of the 2024 KSSK Coordination Meeting which has been carried out consisting of the Ministry of Finance (Kemenkeu), Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).

"We estimate that Indonesia's economic development for 2024 is still at 5 percent-5.2 percent," said Finance Minister Sri Mulyani Indrawati at the KSSK III Periodic Meeting Results Press Conference in 2024, Friday, August 02.

Sri Mulyani said that the largest driving factor from the Indonesian economy comes from household consumption and investment and estimates that in 2024 it will still be a factor that makes a good contribution.

"We all know that consumption is still well maintained and investments are starting to pick up," he said.

In addition, Sri Mulyani estimates that in the second quarter of 2004 the export value will still increase, thereby increasing the surplus on Indonesia's trade balance. The increase was driven by exports of manufacturing and mining production.

"Our exports for goods are expected to increase, especially in the second quarter of 2024, for exports of manufacturing production and mining exports," he said.

According to Sri Mulyani, exports of goods increased in the second quarter of 2024, driven by exports of Indonesia's main trading partnership, namely China and India. Because India currently has healthy and relatively high economic growth.

"In the future, we see an increase in domestic economic activity will continue until the end of 2024," he added.

Sri Mulyani conveyed that from the fiscal policy, the implementation of the 2024 State Budget, especially in terms of government spending, will be focused on maintaining price stability because it determines people's purchasing power because the consumption sector is a driving factor in economic growth.

In addition, Sri Mulyani said that the government will continue to run social protection programs, especially for vulnerable communities, hoping that the impact on people's purchasing power and consumption can be maintained.

"From the fiscal side, we also see that at the end of the year there will be simultaneous regional elections, namely in November 2024, the same as the election cycle in February. In November 2024, this will certainly have a positive impact on shopping activities, in addition to spending on the implementation of regional elections and that the number is almost comprehensive with the election", he explained.

Just like the February election cycle, at Nove 2024 this will certainly have a positive impact on spending activities other than spending on the implementation of the Pilkada and that the number is almost comprehensive in general.

Sri Mulyani estimates that consumption activities are expected to have a positive impact and that investment will strengthen in line with the completion of various national projects such as infrastructure.

"I see that the acceleration of settlement is maintained and investment from the private sector, so in this case Domestic Investment (PMDN) and Foreign Investment (PMA), it is also estimated that the financial sector, both banks and capital market, will still be maintained," he explained.

Furthermore, Sri Mulyani said that the government is optimistic that economic activity in the manufacturing, construction and trade sectors will be maintained.

"Especially from the increase in added value for downstreaming and production results," he explained.