Sri Mulyani Predicts Economic Growth To Reach 5.1 Percent By The End Of 2024

JAKARTA - The Financial System Stability Committee (KSSK) predicts that by the end of 2024 economic growth will reach 5.1 percent, although the global economy and financial markets are under pressure due to the higher escalation of conflicts in the Middle East.

"With the economic development we are monitoring and we predict that by the end of 2024, we predict that by the end of 2024, we estimate that economic growth until the end of the year will reach 5.1 percent," said Finance Minister Sri Mulyani Indrawati at the KSSK Periodic Meeting Results Press Conference in 2024, Friday, October 18.

This is based on the results of the KSSK Coordination Meeting conducted by the Ministry of Finance (Kemenkeu), Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).

However, Sri Mulyani said that the KSSK would remain vigilant and anticipate an increase in the dynamics of global economic uncertainty and financial markets in the fourth quarter of 2024.

In line with the escalation of geopolitical turmoil in the Middle East region.

"We are increasing vigilance amid various risks, especially those from external ones that are dynamic and have the potential for its propagation of the economy and stability in the domestic financial sector," he said.

Sri Mulyani explained that the geopolitical tension between Israel and Palestine that developed with Hesbullah to attack Lebanon, was even included in geopolitical tensions because of direct confrontation with Iran.

According to Sri Mulyani, this escalation is high enough to affect global financial dynamics and all KSSK members will continue to strive to mitigate the impact of the uncertainty of global conditions on Indonesia's economy and finances.

Meanwhile, Sri Mulyani said that for next year or the first year of Prabowo Subianto's government, economic growth would still be in accordance with the 2025 State Budget of 5.2 percent.

Sri Mulyani said that economic growth will still be driven by domestic demand, and steps to structural reforms to increase productivity and strengthen Indonesia's economic structure, including activities for employment and investment in the downstream range to create higher added value.