BI Optimistic That Indonesia's Economic Growth Will Strengthen In 2024

Governor of Bank Indonesia Perry Warjiyo. (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) believes that Indonesia's economic growth in 2024 will continue to be supported by domestic demand compared to 2023.

BI Governor Perry Warjiyo revealed that Indonesia's economic growth in 2024 is predicted to be in the range of 4.7 percent to 5.5 percent, or higher than 2023 in the range of 4.5 percent to 5.3 percent.

According to Perry, this is driven by consumption and investment in line with the acceleration of government spending at the end of the year and the acceleration of the completion of several National Strategic Projects (PSN).

"Indonesia's economic growth this year is supported by domestic demand, especially continued consumption growth," Perry explained at a press conference, Wednesday, January 17, 2024.

Perry said that domestic demand growth is in line with the positive impact of holding general elections (Pemilu) as well as increasing investment, especially buildings, due to the continued National Strategic Project (PSN) including the Capital City of the Archipelago (IKN).

Meanwhile, export performance is predicted to be not yet strong as a result of the global economic slowdown and the decline in commodity prices.

Meanwhile, when viewed from the business field, BI believes growth will strengthen in the manufacturing, wholesale and retail trade, information and communication, construction, as well as transportation and warehousing industries.

Then if you look at spatial growth, good growth is predicted in all regions, especially Sulawesi, Maluku, Papua, and Java.

"In the Sulawesi-Maluku-Papua (Sulampua) area, there is mineral downstreaming. Meanwhile, in Java, it is due to strong domestic demand," added Perry.

Perry said BI would continue to strengthen the Government's fiscal stimulus with BI's macroprudential stimulus to encourage economic growth, especially in terms of domestic demand.