Indonesia’s economy remains strong, BI boss says household consumption should improve

JAKARTA – Bank Indonesia (BI) reports that Indonesia’s economic growth is well supported by domestic and export demand.

BI Governor Perry Wargeo said economic growth in the second quarter of 2024 was recorded at 5.05 percent (yoy), supported mainly by household consumption and investment.

He explained in a press conference on Wednesday, August 21, “Exports increased due to demand from major trading partners and increased service exports.

Based on business sector (LU), economic growth is mainly supported by manufacturing, construction and large and retail trade industries, Perry said.

Meanwhile, Perry said that spatially, growth is increasing in most parts of Indonesia, with Bali-Nusa Tenggara (Balinusra) and Sulawesi-Maluku-Papua (Sulambua) seeing the most growth.

„In the future, economic growth should be encouraged so that the confidence of economic actors in the prospects for the national economy can still be maintained,” he said.

According to Perry, household consumption should increase further in line with the end of seasonal factors related to national religious holidays (HBKN) and the impact of elections in the first semester of 2024.

Perry added that the continuation of the National Strategic Plan (PSN) is projected to increase investment, particularly private investment.

Additionally, the increase in fiscal stimulus from 2.3 percent to 2.7 percent of GDP in 2024 is expected to have a multi-fold impact on the economy.

Bank Indonesia predicts economic growth of 4.7 percent – 5.5 percent in 2024.

Bank Indonesia continues to strengthen the integration of the government’s fiscal stimulus with Bank Indonesia’s macroprudential stimulus to support sustainable economic growth, particularly on demand, said Perry.

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English, Chinese, Japanese, Arabic and French versions are automatically generated by AI. So there may still be errors in translation, please always refer to Indonesia as our main language. (The system is supported by DigitalSiber.id)

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