Indonesia's Economic Growth Is Predicted To Be Maintained Even Though Non-Oil And Gas Exports Slow Down

JAKARTA - Bank Indonesia (BI) said that Indonesia's economic growth was maintained, supported by domestic demand, as well as investments that were predicted to grow positively in the fourth quarter of 2024.

BI Governor Perry Warjiyo said investment growth in the fourth quarter of 2024 was supported by the completion of various National Strategic Projects (PSN) and private investment supported by incentives from the government.

"House consumption is predicted to continue to grow driven by maintained consumer beliefs and the positive impact of the implementation of regional elections in various regions," he explained at a press conference, Wednesday, December 18.

In addition, Perry conveyed that government consumption was higher in line with the increase in government spending activities at the end of the year.

In addition, Perry estimates that non-oil and gas exports will slow down due to the global economy that is not yet strong.

Meanwhile, sectorally, growth is also supported, especially by the manufacturing, lonstruction, and wholesale and retail trade sectors.

"Overall the year, economic growth in 2024 is predicted to be in the range of 4.7 percent - 5.5 percent and an increase to 4.8 percent - 5.6 percent in 2025," he explained.

In the future, Perry said that various efforts need to be made to support economic growth, both in terms of demand and the supply side.

Therefore, Bank Indonesia strengthens the policy mix to encourage economic growth, and synergizes closely with the government's fiscal stimulus policy.

"This effort is supported by optimizing the macroprudential policy stimulus and accelerating the digitization of payment transactions taken by Bank Indonesia," he said.

In terms of supply, Perry conveyed that the government's structural reform policy needs to be strengthened to encourage the economic sector that can absorb labor.