Household Consumption In The Second Quarter Of 2024 Only Grows 4.9 Percent, Coordinating Minister Airlangga: That's Normal

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto claims, household consumption growth of 4.9 percent is a high number even though it is still below the national growth rate.

Airlangga said that not all business sectors grew above the national economic growth of 5.05 percent (yoy) in the second quarter of 2024.

Thus, Airlangga stated that the growth in household consumption by 4.93 percent was still below national economic growth. According to him, this is normal.

"Not all sectors under national economic growth (such as) manufacturing under national economic growth. Only a few sectors have jumped, including construction, food and beverages and others. So, that's normal, but we see everything is positive," said Airlangga at his office, Monday, August 5th.

He also claims that household consumption growth is relatively high when compared to other countries. Moreover, this sector is still the sector that contributes dominantly to Gross Domestic Product (GDP) in the second quarter of 2024.

"When compared to other countries, the figure is relatively high. And the contribution is still dominant, consumption is still 54.3 percent of the total GDP," he said.

"This consumption was of course driven by Ramadan, Eid al-Fitr and community mobility activities. Including activities in hotels, restaurants and cafes," he concluded.

Previously, the Central Statistics Agency (BPS) reported a 4.93 percent growth in household consumption in the second quarter of 2024 year on year (yoy).

This growth slowed down when compared to the same period last year which reached 5.22 percent.

Deputy for Balance and Statistics Analysis of BPS Moh. Edy Mahmud said that the growth in household consumption slowed down due to some commodities such as clothing and transportation experiencing growth that did not grow as high as the same period last year.

"So, sub-groups or clothing and transportation commodities experienced growth, although positive but not as high as last year's growth. In addition, there was also a shift in Ramadan last year in April. Then this year most of it is in March and April. Ramadan's shift affects its pattern, so Idul Fitri consumption has been carried out in the first quarter," he said at a press conference, Monday, August 5.

According to Edy, the slowdown can be seen from the slowing trade and retail index as well as the selling of slow motorbikes.