Indonesia's Economy Reaches 5.03 Percent In 2024, BPS Disburses Its Motivater

BPS (Photo: Doc. Antara)

JAKARTA - The Central Statistics Agency (BPS) recorded that Indonesia's economic growth throughout 2024 only reached 5.03 percent. This figure is lower than 2023 which was 5.05 percent.

Acting Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti said that there are five business fields with the largest contribution to the 2024 economy, namely the processing industry growing 4.43 percent (c-to-c), trading 4.86 percent (c-to-c), agriculture 0.67 percent (c-to-c), construction 7.02 percent (c-to-c), and mining 4.90 percent (c-to-c).

"The five business fields with the largest contribution to the economy, namely the Industry for Processing, Trade, Agriculture, Construction, and Mining," he said at a press conference, Wednesday, February 5.

Amalia added that in terms of the business field with the highest growth, namely other services of 9.80 percent (c-to-c), supported by increased recreational activities in line with the increasing number of domestic tourists and foreign tourists, as well as various sports and entertainment events.

Then followed by Transportation & Warehousing of 8.69 percent (c-to-c) driven by an increase in the number of passengers and goods due to community mobility and other increased economic activities.

Furthermore, 8.56 percent of Accommodation & Drinking Food (c-to-c) is supported by community mobility, as well as government and private activities.

Meanwhile, in terms of expenditure, the main contributor to economic growth came from household consumption contributing 54.04 percent and growing 4.94 percent (c-to-c).

"When viewed from the sources of growth throughout 2024, household consumption provides the largest source of growth throughout 2024, which is 2.60 percent", he said.

Amalia explained that household consumption continues to grow as household activities and mobility increase. High-growing consumption groups include transportation and communication, which grew 6.56 percent driven by increased community mobility, causing increased demand for transportation and communication consumption, as reflected in the increasing number of rail, sea and air transport passengers.

Then, restaurants and hotels that grew 6.53 percent were supported along with the increase in tourist activities during school holidays, national religious holidays.

Furthermore, the Gross Fixed Capital Formation (PMTB) component contributed 29.15 percent and grew 4.61 percent (c-to-c). This component provides a source of growth of 1.43 percent to the 2024 economy.

"For the PMTB component, it looks positive growing and is reflected in several indicators of the capital goods group, especially. This can be seen that there has been an increase in the realization of PMA and PMDN investments, then PMTB from the government and the private sector also seems to be growing positively," he said.

Amalia said that household consumption and PMTB were still the main contributors to GDP in 2024, with an accumulation of contributions of 83.19 percent.

Next, the component with the highest growth in terms of expenditure, namely consumption of Non-Finic Institutions that Serve Households (LNPRT) contributed 1.36 percent and grew 12.48 percent (c-to-c). The LNPRT component grew high driven by increased activity during the 2024 General Election and Regional Head Election.

Then government consumption grew 6.61 percent (c-to-c), exports grew 6.51 percent (c-to-c) and imports grew higher, namely 7.95 percent (c-to-c). This makes economic growth in 2024 slightly weakened compared to economic growth in 2023 which amounted to 5.05 percent.

"Indonesia's economic growth in 2024 has slowed down. Indeed, the growth of household consumption and PMTB is better than 2023, but if we look at the graph of sources of economic growth, one component that is holding back higher economic growth is from net exports because net exports make donations, although still positive, because positive is slightly smaller than 2023, then the contribution to growth looks negative 0.21 percent" he said.