BI Calls Indonesia's Economic Resilience Strong Amid Global Uncertainty

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia considers the Indonesian economy to remain resilient amid increasing global uncertainty.

The Central Statistics Agency (BPS) showed economic growth in the first quarter of 2024 of 5.11 percent year on year (yoy), an increase compared to growth in the previous quarter of 5.04 percent (yoy).

Director of the Communication Department Fadjar Majardi estimates that in the future, economic growth in 2024 will remain strong in the range of 4.7 percent - 5.5 percent (yoy) supported by domestic demand, especially from continuing consumption growth and building investment in line with the continuing development of the National Strategic Project (PSN).

Fadjar said that the increasing economic growth in the first quarter of 2024 was supported by higher domestic demand.

"House consumption grew by 4.91 percent (yoy) in line with the implementation of the 2024 General Election, national holidays, and collective leave," he explained in his statement, Tuesday, May 7.

In addition, the consumption of Non-profit Institutions that Serve Households (LNPRT) was also recorded to have grown high by 24.29 percent (yoy) driven by the activities of holding the 2024 General Election and the moment of Ramadan.

Fadjar said that Government consumption increased by growing by 19.90 percent (yoy) driven by an increase in goods expenditures, especially related to the implementation of the 2024 General Election, as well as personnel expenditures. Investment grew by 3.79 percent (yoy), mainly supported by building investments as infrastructure development continued.

"Meanwhile, exports grew by 0.50 percent (yoy), especially goods exports in line with the decline in commodity prices for export main products, amid the growing demand for several major trading partner countries," he said.

Fadjar said that increased economic growth was also reflected in the side of the Business and Spatial Fields. In terms of the Business Field (LU), almost all of the LU in the first quarter of 2024 showed positive performance with high growth, including recorded in LU related to mobility, especially Transportation and Wavy, Provision of Accommodation and Drinking, as well as Large and Retail Trade.

"TheLU of the Processing Industry as the main contributor to growth also grew well as domestic and global demand was maintained," he said.

Meanwhile, in terms of spatial terms, Fadjar said that economic growth in the first quarter of 2024 in most parts of Indonesia was higher than in the previous quarter's growth, except for Sumatra and Java.

"The highest growth was recorded in Sulawesi-Maluku-Papua (Sulampua), followed by Kalimantan, Bali-Nusa Tenggara (Bali and Nusra), Java, and Sumatra," he concluded.