The Ministry Of Finance Says Public Consumption Can Grow 5 Percent Next Year
SERANG - The Ministry of Finance (Kemenkeu) revealed that the household consumption component is targeted to grow 5 percent because it is the main driver of Gross Domestic Product (GDP) in economic growth with a proportion of 53 percent contribution to GDP.
Head of the Center for Macroeconomic Policy of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Noor Faisal Achmad, explained that there are factors that cause household consumption to increase by 5 percent, namely being driven by purchasing power, controlled inflation, and increasing labor.
"Of course, the activity factors that we need to encourage together when we talk about consumption, we maintain purchasing power, controlled inflation, and how workers can increase," said Faisal in the media gathering of the Ministry of Finance 2024, Wednesday, September 25.
Furthermore, Faisal said that government consumption is targeted to increase by 5 percent next year. However, its contribution to GDP is relatively small, which is 7.4 percent.
Faisal said that government spending is directed to be of higher quality with a focus on quality spending on education, health, and food security. Furthermore, bureaucratic spending is also directed to be more efficient and effective.
In addition, Faisal said that the Free Begizi Food (MBG) program is also expected to be one of the factors that improve the quality of Human Resources (HR) and economic growth.
Furthermore, Faisal said the investment is targeted to grow by 5.5 percent with a contribution to GDP of 29.3 percent.
In terms of increasing investment [factors] food, energy, connectivity and digital infrastructure, high added-value sectors such as downstream SDA and digitization. Measured fiscal incentives," he said.
Meanwhile, exports are expected to increase by 5.4 percent and are projected to contribute 21.4 percent to GDP.
Faisal explained that this growth will be achieved by downstreaming and strengthening programs in the participation of global supply chains, as well as diversification of export products and markets.
Meanwhile, imports next year are estimated to grow by 4.6 percent and contribute 18.9 percent to GDP.
This is expected to occur with economic transformation; increased competitiveness and productivity, energy security, green industry and low emissions. Food security industry. Electronic and digital industry development," he concluded.
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Meanwhile, here are the basic assumptions of macroeconomics and targets or development indicators 2025:
The basic assumption of macroeconomics in 2025
- Economic growth: 5.2 percent
- Inflation: 2.5 percent
- The rupiah exchange rate against the US dollar: IDR 16,000
- SUN flower level-10 years: 7 percent
- Indonesian crude oil prices: 82 US dollars per barrel
- Earth Oil Lifting: 605,000 barrels per day
- Earth Gas Lifting: 1,005,000 barrels of oil equivalent per day
Targets and development indicators in 2025
- Poverty rate: 7 percent-8 percent
- Extreme poverty rate: 0 percent
- Open unemployment rate: 4.5 percent-5 percent
- Gini ratio: 0.379-0.382
- Human Capital Index: 0.56
- Farmers' Exchange Rate (NTP): 115-120
- Fisherman's Exchange Rate (NTN): 105-108