CORE Projects Indonesia's Economic Growth To Reach 5 Percent In 2024

Illustration (Photo: Doc Antara)

JAKARTA - Indonesia's Center of Reorm on Economics (CORE) economic growth in the second quarter of 2024 reached 5 percent.

Likewise, the entire year 2024 ranges from 4.9 to 5 percent.

CORE Indonesia Executive Director Mohammad Faisal revealed that Indonesia's economic growth in the second quarter would be a slowdown if compared to the first quarter of 2024 which was recorded at 5.11 percent.

"There is a marginal slowdown. The same is true for the prediction of overall economic growth in 2024, we predict it in the range of 4.9 to 5 percent," he said in a discussion on Economic Risk Mitigation ahead of the New Government, in Jakarta, Tuesday, July 23.

Faisal explained that this was due to a slowdown in the household consumption sector.

As is known, Indonesia's economic growth itself is supported by household consumption.

"The slowdown is mainly due to the slowdown in household consumption which contributes the most of course to our GDP," he explained.

In addition, Faisal also highlighted the target of Indonesia's economic growth set by the elected president Prabowo Subianto, which is 8 percent.

He considered that the target was higher than the one targeted in the 2025-2045 National Long-Term Development Plan (RPJPN).

Faisal said, in the 2025-2045 RPJPN, Indonesia's economic recovery is targeted to reach 6.5 to 7 percent.

Currently, the RPJPN for this period is still being discussed with the DPR.

"We know that Pak Prabowo recently said that he was optimistic about economic growth of up to 8 percent, yes. The reality is that this year the prediction range is 4.9 to 5 percent. So it hasn't changed much compared to the last 10 years of Jokowi's administration," he said.

"And this needs to be anticipated for this risk because it will be very possible if there is no breakthrough in terms of economic policy strategies, it will miss the economic growth again," continued Faisal.