Airlangga Pede Economic Growth Quarter II-2024 Above 5 Percent

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said he was still optimistic that Indonesia's economic growth in the second quarter of 2024 would be above the 5 percent level. as the realization of economic growth in the first quarter of 2024 was 5.11 percent on an annual basis or year on year (yoy).

According to Airlangga, economic growth in the second quarter of 2024 will still be supported by public consumption, export performance, and growth in the manufacturing industry sector.

"So yes, it's still around 5 percent, the World Bank sees Indonesia still above 5 percent. So yes optimistic-opticism," said Airlangga at his office, Friday, July 26.

Airlangga said that in the second quarter of 2024 there were factors that supported household consumption as reflected in the increase in sales of the food and beverage industry.

"The sale of food and beverages has increased by 15 percent. The sale of cars has been delayed because they hope that there will be additional facilities from the government," he said.

Previously, the Indonesian Center of Reorm on Economics (CORE) estimated Indonesia's economic growth in the second quarter of 2024 to reach 5 percent. Likewise, the total year 2024 which ranged 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 own economic growth 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 assessed that the target was higher than the target in the 2025-2045 National Long-Term Development Plan (RPJPN).

Faisal said that 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.