The Indonesian Economy Is Projected To Grow 5 Percent In The Second Quarter Of 2024, Down Slightly From Last Year

Indonesian Economy (Photo: Unsplash)

JAKARTA - Gross domestic product (GDP) of the Republic of Indonesia (RI) is estimated to grow around 5 percent year on year (yoy) in the second quarter of 2024. "This represents a slight decline from the growth of 5.11 percent yoy recorded in the first quarter of 2024," said Bank Mandiri economist Reny Eka Putri quoting Antara.Reny said on a quarterly basis, Indonesia's GDP growth in the second quarter of 2024 is expected to increase by 3.73 percent. Lower annual growth projection for the second quarter of 2024 is related to normalization of post- general election economic activity and higher seasonal consumption during Ramadan celebrations in the previous quarter.House consumption and government spending are projected to grow by 4.7 percent and 11.2 percent, respectively. Meanwhile, investment or Gross Fixed Capital Development (GFCF) is expected to show a higher growth of 4.7 percent, driven by increased sales of cement for property. Then, RI net exports are also projected to improve due to better export performance in the second quarter of 2024. Previously, the Financial System Stability Committee (KSSK) projected Indonesia's economic growth throughout 2024 to be in the range of 5.0 percent to 5.2 percent.

"We estimate Indonesia's economic growth for 2024 in the total range of 5.0 percent to 5.2 percent," said Finance Minister Sri Mulyani Indrawati at the KSSK press conference. In order to maintain consumption performance, government spending on the State Revenue and Expenditure Budget (APBN) will continue to be directed to maintain price stability. The Ministry of Finance will also continue to encourage social protection programs, especially for vulnerable communities, so that purchasing power is maintained.