Indonesia's Economy Grows 5.05 Percent In The Second Quarter Of 2024, Coordinating Minister Airlangga: Better Than China

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Theresia Agatha/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto opened his voice regarding the Central Statistics Agency (BPS) which reported that economic growth in the second quarter of 2024 reached 5.05 percent year on year (yoy).

This growth slowed down when compared to the previous quarter which reached 5.11 percent (yoy).

Meanwhile, economic growth in Semester I-2024 reached 5.08 percent.

Airlangga said that Indonesia's economic growth in the second quarter was still good amid global uncertainty.

"Earlier we just heard an explanation from BPS regarding our economic growth. In the midst of global uncertainty, our economic fundamentals are still good and in the second quarter we grew 5.05 percent," said Airlangga at his office, Monday, August 5.

Airlangga even said that Indonesia's economic growth was better than other countries. Like China at 4.7, Singapore at 2.9. Then, South Korea at 2.3 and Mexico at 2.24.

"Well, this economic growth is also supported by controlled inflation, which is 2.13," he said.

He added that Indonesia's economic growth was also supported by various expenditure components that were still growing positively.

"In the second quarter of 2024, household consumption and PMTB were still the main contributors to GDP. The highest growth was experienced by consumption of LNPRT, exports and imports driven by an increase in export volume," he said.

"Meanwhile, imports are driven by an increase in imports of raw and auxiliary materials," he continued.

According to Airlangga, there are four policies carried out by the government to encourage Indonesia's economic growth.

First, the DTP VAT incentives for the housing sector and the motorized vehicle sector, especially electric motorized vehicles for the stimulus of the middle class.

Then, optimize the implementation of cheap market operations and/or the cheap food movement (GPM), distribution of medium rice through the SPHP program which reaches 810.000 tons.

The distribution of rice food assistance for the second phase for the April-June 2024 period has been realized by 87.79 percent.

He said this was done to keep food prices under control.

The third policy is the development of PSN throughout 2024 with a project value of IDR 550.5 trillion. There are 41 PSN targeted for completion this year, of which 5 projects have been completed in the first quarter of 2024.

Meanwhile, there are 36 PSN that will be completed by the end of the year.

"This is expected to be a growth booster in the remaining 2024 period," he said.