Bank Indonesia Estimates Economic Growth in Q3 2024 Will Remain Maintained

Illustration (Photo: Doc Antara)

JAKARTA - Bank Indonesia (BI) estimates that Indonesia's economic growth will remain well maintained amid increasing uncertainty in the global financial market.

This is reflected in data from the Central Statistics Agency (BPS) showing that economic growth in the third quarter of 2024 grew by 4.95 percent (yoy), after being recorded at 5.05 percent (yoy) in the previous quarter.

Executive Director of the BI Communication Department Ramdan Denny Prakoso said that economic growth in the third quarter of 2024 was supported by maintained domestic economic activity.

"Household consumption remains good with growth of 4.91 percent (yoy) in line with maintained purchasing power and increased public mobility," he said in a statement, Wednesday, November 6.

Ramdan said that overall investment growth increased to 5.15 percent (yoy) supported by the continued construction of the Indonesian Capital City (IKN) project and other construction activities.

In addition, government consumption increased by 4.62 percent (yoy) in line with the increase in state spending. Meanwhile, consumption of Non-Profit Institutions Serving Households (LNPRT) grew high by 11.69 percent (yoy) in line with increased activity in preparation for the 2024 Pilkada and the XXI National Sports Week (PON).

Meanwhile, exports increased by 9.09 percent (yoy) supported by demand from major trading partners which continued to grow positively as well as increasing prices for several of Indonesia's main export commodities.

Exports of services increased driven by an increase in foreign tourist visits.

Ramdan said that well-maintained economic growth was also reflected in terms of Business Fields (LU) and spatial.

From the LU side, all LUs in the third quarter of 2024 showed positive performance.

The LU of the manufacturing industry as the main contributor to growth also grew well in line with maintained domestic and global demand.

According to Ramdan, the LU of Accommodation and Food and Beverage and the LU of Transportation and Warehousing grew positively in line with increased mobility driven by the implementation of national and international events.

Meanwhile, from a spatial perspective, economic growth in the third quarter of 2024 grew positively in all regions on an annual basis. The highest economic growth was recorded in the Sulawesi-Maluku-Papua (Sulampua) region, followed by Bali-Nusa Tenggara (Balinusra), Kalimantan, Java, and Sumatra.

Ramdan said that going forward, economic growth in 2024 is predicted to be in the range of 4.7 percent to 5.5 percent (yoy) supported by domestic demand.