Coordinating Minister Airlangga Says Extreme Poverty Rate Is Almost 0 Percent In 2024

Coordinating Minister for the Economy Airlangga Hartarto / PHOTO via Instagram airlanggahartarto_official

JAKARTA - Indonesia's economic growth continues to show optimism and consistency in line with increased competitiveness supported by business efficiency and the government.

Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto said good economic growth was shown with the poverty rate continuing to decline, which was close to zero percent in 2024.

This achievement reflects the success of structural reforms, in line with the results of the assessments of various international rating institutions that assess the Indonesian economy is still attractive.

In fact, the latest assessment from S&P which complements the results of all Sovereign Credit Ratings also shows that Indonesia is at one level above the Level Investment Grade.

"The extreme poverty rate continues to decline to 0.83 percent as of March 2024, approaching the target of 0 percent by 2024," Airlangga said at a press conference on the Draft State Revenue and Expenditure Budget and the 2025 TA Financial Note at the office of the Directorate General of Taxes at the Ministry of Finance, Jakarta, Friday, August 16.

"The unemployment rate fell to 4.82 percent in February 2024. The number of people working increased by 3.55 million people from the February 2023 period to February 2024," he continued.

Even though the global economy is still filled with high uncertainty, Indonesia actually has good durability. This is supported by the realization of strong and relatively high growth compared to other countries.

It is known, until the second quarter of 2024, the Indonesian economy still grew strong by 5.05 percent (yoy).

Indonesia's inflation rate in July 2024 was also recorded at 2.13 percent (yoy). This figure is in the target range of 2.5 percent to 1 percent and lower than other countries.

"The trade surplus also continues this July with a figure of 472 million US dollars. Continuing the surplus record for 51 consecutive months since May 2020," he said.

Airlangga said there are several government strategies in maintaining strong economic fundamentals. The trick is to revitalize conventional economic machines through several flagship programs, such as Pre-Employment Cards, Job Creation Law, PSN, SEZ and access to OECD and CPTPP.

In addition, by developing a new economic engine through the use of digitalization and AI utilization, preparing digital talent, developing data centers, energy transition, downstreaming, strengthening the electric vehicle (EV) ecosystem and the initiation of the semiconductor industry.

"Of course, we are still carrying out activities in the field of social protection and community empowerment through the KUR program, free nutritious lunch programs and school rehabilitation," he added.