Economic Growth In 2024 Failed To Achieve The State Budget Target

JAKARTA - The Central Statistics Agency (BPS) reported that Indonesia's economic growth throughout 2024 was recorded at only 5.03 percent, or lower than the government's target of 5.2 percent.

Plt. Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti said that the Indonesian economy based on the amount of gross domestic product (GDP) in the fourth quarter of 2024 at the basis of applicable prices was IDR 5,674.9 trillion and on the basis of constant prices of IDR 3,296.7 trillion.

"Indonesia's year on year (yoy) economic growth in the fourth quarter of 2024 compared to the fourth quarter of 2023 was recorded at 5.02 percent. Cumulatively or Indonesia's economic situation in 2024 grew by 5.03 percent," he said at the Press Conference, Wednesday, February 5.

Meanwhile, economic growth in the fourth quarter of 2024 when compared to the third quarter of 2024 or quarterly, recorded growth of 0.53 percent. This figure is in line with the seasonal pattern as happened in previous years, namely the growth in the third quarter was relatively lower than in the fourth quarter.

However, economic growth in the fourth quarter of 2024 was only 5.02 percent or lower when compared to economic growth in the fourth quarter of 2023 which was 5.04 percent.

To note, the economic growth target set by the government in the basic economic assumption of the 2024 State Revenue and Expenditure Budget (APBN) is 5.2 percent.

Previously, the Ministry of Finance (Kemenkeu) reported that all basic macroeconomic assumptions in the 2024 State Budget had missed the target.

Finance Minister Sri Mulyani Indrawati estimates that economic growth in 2024 will only reach the range of 5 percent or lower than the target of the basic economic assumption in 2024 which reaches 5.2 percent.

"Economic growth in the first quarter reached 5.11 percent, second quarter 5.05 percent, third quarter 4.95 percent, and fourth quarter still not out, we estimate the whole year to be estimated at 5 percent," he said at the KiTa State Budget press conference, on Monday, January 6.

In addition, Sri Mulyani said that inflation reached 1.57 percent or lower than the assumed target of 2.8 percent.

However, inflation had soared to 3.1 percent in April 2024.

For the rupiah exchange rate to weaken to the level of Rp. 16,162 per US dollar by the end of 2024, this figure is far from what is assumed by the 2024 State Budget of Rp. 15,000 per US dollar.

According to Sri Mulyani, the depreciation of the rupiah exchange rate is quite significant this year, so it greatly affects state spending, but it is still offset by allocations to mitigate effective spending as a shock absorber.