BI Boss Says Indonesia's Economy Remains Strong, Household Consumption Must Be Improved

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) reports that Indonesia's economic growth remains well supported by domestic and export demand.

BI Governor Perry Warjiyo said economic growth in the second quarter of 2024 was recorded at 5.05 percent (yoy), mainly supported by household consumption and investment.

"Exports recorded an increase driven by demand from major trading partners and increased service exports," he explained at a press conference, Wednesday, August 21.

If based on the business field (LU), Perry said, economic growth is mainly supported by the Processing, Construction, and Large and Retail Trade Industry.

Meanwhile, spatially, Perry said growth was recorded to increase in most parts of Indonesia, with the highest growth in the regions of Bali-Nusa Tenggara (Balinusra) and Sulawesi-Maluku-Papua (Sulampua).

"In the future, economic growth needs to be encouraged so that it can still maintain the confidence of economic actors in the prospects for the national economy," he said.

According to Perry, household consumption needs to be further increased in line with the end of seasonal factors related to National Religious Holidays (HBKN) and the impact of the election in the first semester of 2024.

Perry added that the continuation of the National Strategic Project (PSN) is predicted to increase investment, especially private investment.

In addition, the increase in fiscal stimulus in 2024 from 2.3 percent to 2.7 percent of GDP is also expected to effectively have a multiplier impact on the economy.

"Bank Indonesia predicts economic growth in 2024 to be in the range of 4.7 percent-5.5 percent," he said.

Perry said that Bank Indonesia continues to strengthen the synergy of the Government's fiscal stimulus with a macroprudential stimulus of Bank Indonesia to support sustainable economic growth, especially in terms of demand.