Airlangga: Indonesia's Economic Growth Is Better Than Singapore And Saudi Arabia

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia's economic growth throughout 2024 was 5.03 percent better than other countries such as Singapore, Malaysia, and Saudi Arabia.

"Indonesia is still growing by 5.03 percent year on year, and this is still higher than peer country in ASEAN, such as Singapore at 4.3 percent, and Malaysia 4.8 percent. Also Saudi Arabia is still 4.4 percent," he said at a press conference, Wednesday, February 5.

According to him, Indonesia's economic stability is supported by inflation which remains low and under control and our debt ratio is still below 40 percent or 38.9 percent.

"This reflects a careful fiscal policy and a sufficient space to invest in," he said.

Airlangga said that the year on year inflation rate in 2024 is at its lowest, at 1.57 percent, controlled at the lower limit, thus supporting economic growth.

"The realization of inflation in January fell to 0.76 percent. This 0.76 percent decrease was supported by the policy carried out by the Prabowo government, namely with a 50 percent discount on electricity rates. So, a decrease occurred in the administrative price," he explained.

"However, if we look at the core inflation, it still increases. However, it is clear that with this 50 percent subsidy rate, our inflation is low. If we look at the figure in 2024, there will also be improvements in the poverty rate, namely 9.03 percent, and the unemployment rate at 4.91 percent. "he added.

Airlangga said, in terms of expenditure, all components were recorded to have experienced positive growth where household consumption grew 4.94 percent, and contributed 54 percent to the Indonesian economy.

According to him, the increase in consumption is driven by the transportation, hotel and restaurant sectors, which have a high impact on community mobility during the year-end holidays.

Meanwhile, investment or Gross Fixed Capital Formation (PMTB) grew 4.61 percent, or reached Rp6,452.5 trillion. This is mainly driven by infrastructure by the government and investment expansion from the private sector.

"The growth in government consumption is also high, in line with the increase in the realization of the APBN in personnel spending as well as spending on goods and services," he said.

Meanwhile, from the business field, where the five largest sectors, namely the manufacturing, trade, agriculture, construction, and mining industries contributed 63.9 percent to GDP 2024.