The Indonesian Financial System Stability Committee (KSSK) expects Indonesia’s economic growth to reach 5.2% in 2024.
Indonesian Finance Minister Sri Mulyani, who is also the chairman of the committee, said at a press conference on the 2nd that Indonesia’s overall economic growth in 2024 is expected to be between 5.0% and 5.2%. She said that the biggest driving force of Indonesia’s economy comes from household consumption and investment. At present, Indonesia’s consumption momentum is good and investment has begun to pick up. At the same time, the increase in exports has pushed up Indonesia’s trade surplus.
The Indonesian Financial System Stability Committee, composed of institutions such as the Indonesian Ministry of Finance and the Indonesian Central Bank, believes that the Indonesian economy will continue to grow against the backdrop of the current global economic slowdown. In the future, the rupiah exchange rate is expected to run stably and have a trend of strengthening.
According to data from the Indonesian Central Bureau of Statistics, Indonesia’s economy grew by 5.11% year-on-year in the first quarter of this year, exceeding 5.04% in the fourth quarter of 2023. This is also the highest increase in the country’s first quarter economic data since 2019.
The Indonesian Financial System Stability Committee expects Indonesia’s economic growth in the second quarter to reach or slightly exceed 5.0% year-on-year. Despite a slowdown compared to the first quarter, household consumption and investment continued to grow.
From a global perspective, the committee believes that economic pressure in the third quarter is likely to ease. But Mulyani also mentioned that Indonesia needs to pay attention to various risk factors in development.
Relevant international organizations are optimistic about Indonesia’s economic development prospects. Earlier, the International Monetary Fund expected Indonesia’s economy to grow by 5% in 2024 and raised its forecast for 2025 to 5.1%. The Organization for Economic Cooperation and Development expects Indonesia’s economy to grow by 5.1% in 2024 and 5.2% in 2025. The Indonesian government’s expected target for economic growth in 2024 is 5.2%.
Indonesian President Joko Widodo emphasized at the Indonesia Digital Economy and Finance Festival on August 1 that in the context of slowing global economic growth and increasing uncertainty, if Indonesia’s economy wants to continue to grow, it must make good use of all resources and opportunities.