JAKARTA – Bank Indonesia (BI) said the Indonesian economy remains resilient amid increasing global uncertainty.
BI Manager Perry Warjiyo said Indonesia’s economic growth in the first and second quarters of 2024 is expected to be higher than in the fourth quarter of 2023, supported by strong domestic demand driven by household consumption in line with Ramadan and Eid al-Fitr. H.
Perry said building investment was higher than forecast, supported by the continuation of National Strategic Projects (PSN) in some areas and the development of private property as a positive impact of Government incentives.
“However, household consumption and non-construction investments need to continue to be encouraged to support the continuation of the national economic recovery,” he said at a press conference on Wednesday, April 24, 2024.
According to Perry, the performance of goods exports has not been strong due to falling commodity prices and a decline in commodity exports as demand from major trading partners such as China remains weak.
On the basis of Business Areas (LU), it is predicted that the Processing Industry, Information and Communication, Wholesale and Retail Trade and Construction sectors will grow strongly.
Spatially, economic growth in all regions remains good, supported by domestic demand, particularly household consumption, Perry said.
According to Perry, with these various developments, economic growth is expected to be between 4.7 percent and 5.5 percent in 2024.
Perry said that going forward, Bank Indonesia will continue to strengthen policy synergies with the Government, including the Government’s fiscal stimulus combined with Bank Indonesia’s macroprudential stimulus to support sustainable economic growth, especially from the domestic demand side.
