Finance Minister Ibu Sri Mulyani Indrawati anticipates a robust growth rate of 5.2% for Indonesia’s economy in 2024, citing global dynamics and domestic economic potential.

Finance Minister Ibu Sri Mulyani Indrawati has projected a strong growth trajectory for Indonesia’s economy in 2024, with an estimated expansion rate of 5.2%, as outlined in a statement from her ministry released on 7 February 2024.

Indrawati referenced the January edition of the World Economic Outlook by the International Monetary Fund (IMF), which forecasted global economic growth at 3.1% for both 2023 and 2024.

The Finance Minister underlined the expectation of relative stability in domestic inflation, attributed to the impact of the 2024 general elections on public and government expenditure, alongside housing sector policies initiated in the fourth quarter of 2023, poised to fuel growth in the upcoming year.

Emphasizing the positive performance of Indonesia’s economy in 2023 amidst global economic deceleration, Ibu Mulyani highlighted the year-on-year growth of 5.04% in the fourth quarter of 2023 and an annual growth rate of 5.05% for the entire year, buoyed by robust demand, particularly in consumption and investment sectors.

Key contributors to this growth included a 4.47% increase in public consumption in the fourth quarter of 2023, along with a 5.02% growth in Gross Fixed Capital Formation (PMTB) or investment, indicating an upward trend from the previous year.

Noteworthy expansions were observed across various sectors, with manufacturing, trade, agriculture, and mining sectors playing pivotal roles. The manufacturing sector, for instance, registered a positive growth of 4.07% in the fourth quarter of 2023, fueled by strong demand for Indonesia’s export products.

The trade sector also exhibited growth, recording a 4.09% increase in the fourth quarter, driven by heightened trade activity in domestic goods and motorbike sales. Despite weather fluctuations due to the El Nino phenomenon, the agricultural sector demonstrated moderate growth, while the mining sector experienced a significant uptick, supported by increased demand for processed nickel.

Source: Antara News