Airlangga Calls Global Uncertainty And Commodity Prices Sloping For The Indonesian Economy 2024 Not Capai Target

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Aris Nurjani/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said there were several factors that caused the government's 5.2 percent economic growth target in 2024 to be achieved.

Airlangga explained that the economic situation in 2024 was still influenced by global uncertainty even though there was a moment of economic driving such as the political situation last year, namely elections and regional elections.

"The situation in 2024 was also in spite of the general election and regional elections regarding the relatively high uncertainty," he said at a press conference, Wednesday, February 5.

In addition, Airlangga conveyed that another factor that also affected was that it came from commodity prices that tended to slope in 2024 as well as being an obstacle to economic growth during that period.

However, Airlangga said that there are certain commodities whose prices are relatively stable, such as oil, so they are not too affected by global market turmoil.

"For Indonesia, it is very influential, namely commodity prices that are relatively sloping and commodities that are in the immune picking mark of turmoil, especially at oil prices, so that we indeed have revenues from relative exports," he explained.

On the other hand, Airlangga said that Indonesia's economic growth was still relatively higher than the average economic growth of other countries.

"The target for economic growth of 5.2 percent, of course, compared to our peak growth is relatively above average," he said.

Previously, the Central Statistics Agency (BPS) reported that Indonesia's economic growth throughout 2024 was recorded at only 5.03 percent, or lower than the government's 5.2 percent target.

Plt. Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti said that the Indonesian economy based on the amount of gross domestic product (GDP) in the fourth quarter of 2024 at the basis of applicable prices was IDR 5,674.9 trillion and on the basis of constant prices of IDR 3,296.7 trillion.

"Indonesia's year on year (yoy) economic growth in the fourth quarter of 2024 compared to the fourth quarter of 2023 was recorded at 5.02 percent. Cumulatively or Indonesia's economic situation in 2024 grew by 5.03 percent," he said at the Press Conference, Wednesday, February 5.

Meanwhile, economic growth in the fourth quarter of 2024 when compared to the third quarter of 2024 or quarterly, recorded growth of 0.53 percent. This figure is in line with the seasonal pattern as happened in previous years, namely the growth in the third quarter was relatively lower than in the fourth quarter.

However, economic growth in the fourth quarter of 2024 was only 5.02 percent or lower when compared to economic growth in the fourth quarter of 2023 which was 5.04 percent.

To note, the economic growth target set by the government in the basic economic assumption of the 2024 State Revenue and Expenditure Budget (APBN) is 5.2 percent.