BI Optimistic That The Indonesian Economy Capai 5.5 Percent Despite The Slowdown In Growth

Illustration (Photo: Doc Antara)

JAKARTA - Bank Indonesia (BI) is optimistic that Indonesia's economic growth in 2024 is predicted to be in the range of 4.7 percent to 5.5 percent year on year (yoy) supported by domestic demand.

Head of the BI Communications Department, Erwin Haryono, said that Indonesia's economic growth remains good amid the uncertainty of the global economy.

This is reflected in data from the Central Statistics Agency (BPS) showing that economic growth in the second quarter of 2024 grew by 5.05 percent (yoy), continuing the positive performance of economic growth in the previous quarter by 5.11 percent (yoy).

"In the future, economic growth in 2024 is predicted to be in the range of 4.7-5.5 percent (yoy) supported by domestic demand," he explained in his statement, quoted on Tuesday, August 6.

Erwin said that economic growth in the second quarter of 2024 was supported by domestic economic activities that were maintained.

Household consumption grew higher to 4.93 percent (yoy) in line with the increasing and maintained mobility of people.

"Overall investment growth increased to 4.43 percent (yoy) in line with the increase in the performance of government exports and capital expenditures," he said.

Erwin explained that exports grew by 8.28 percent (yoy) supported by the increasing demand for major trading partners and foreign tourist visits.

Meanwhile, consumption of Non-profit Institutions that Serve Households (LNPRT) and government consumption grew to 9.98 percent (yoy) and 1.42 percent (yoy) respectively in line with the end of the 2024 General Election.

According to Erwin, good economic growth is also reflected in the side of the Business Field (LU) and spatially.

From the LU side, he continued, all LU in the second quarter of 2024 showed positive performance.

LU Accommodation and Drinking and LU Transportation and Warehousing grew high along with increasing community mobility in line with activities during religious holidays and school holidays.

"TheLU of the Processing Industry as the main contributor to growth also grew well as domestic and global demand was maintained," he explained.

Meanwhile, in terms of spatial terms, economic growth in the second quarter of 2024 on an annual basis in parts of Indonesia is higher than the growth in the previous quarter.

"The highest economic growth was recorded in the areas of Bali-Nusa Tenggara (Balinusra), followed by Sulawesi-Maluku-Papua (Sulampua), Kalimantan, Java, and Sumatra," he concluded.