KSSK Optimistic Economic Growth Quarter II-2024 Still Grows 5 Percent

KSSK 2 August 2024 (Photo: Aris Nurjani/VOI)

JAKARTA - The Financial System Stability Committee (KSSK) is optimistic that the momentum of Indonesia's economic growth in the second quarter of 2024 will continue and is estimated to continue to grow by 5 percent.

This is based on the results of the 2024 KSSK Coordination Meeting which has been carried out consisting of the Ministry of Finance (Kemenkeu), Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).

"We estimate that for the 2nd quarter it means that between April, May, June, which has been completed, it will grow at 5.0 percent or even slightly above 5 percent year on year (yoy)," said Finance Minister Sri Mulyani Indrawati at the KSSK III Periodic Meeting Results Press Conference in 2024, Friday, August 02.

Sri Mulyani said that the largest driving factor from the Indonesian economy comes from household consumption and investment and estimates that in 2024 it will still be a factor that makes a good contribution.

"We all know that consumption is still well maintained and investments are starting to pick up," he said.

In addition, Sri Mulyani estimates that in the second quarter of 2004 the export value will still increase, thereby increasing the surplus on Indonesia's trade balance. The increase was driven by exports of manufacturing and mining production.

"Our exports for goods are expected to increase, especially in the second quarter of 2024, for exports of manufacturing production and mining exports," he said.

According to Sri Mulyani, exports of goods increased in the second quarter of 2024, driven by exports of Indonesia's main trading partnership, namely China and India. Because India currently has healthy and relatively high economic growth.

"In the future, we see an increase in domestic economic activity will continue until the end of 2024," he added.

Sri Mulyani conveyed that from the fiscal policy, the implementation of the 2024 State Budget, especially in terms of government spending, will be focused on maintaining price stability because it determines people's purchasing power because the consumption sector is a driving factor in economic growth.

"From the fiscal side, we also see that at the end of the year there will be simultaneous regional elections, namely in November 2024, the same as the election cycle in February. In November 2024, it will certainly have a positive impact on shopping activities," he said.