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Indonesia’s Economic Growth in Q1 2024 Reported Below Initial Target

Indonesia’s Economic Growth in Q1 2024 Reported Below Initial Target
Indonesia’s Economic Growth in Q1 2024 Reported Below Initial Target

Indonesia’s economic growth in the first quarter of 2024 stood at 5.11% YoY, surpassing Malaysia and the US.

Statistics Indonesia (BPS) announced that Indonesia’s economy expanded by 5.11 percent year on year (YoY) in the first quarter of 2024, just below the current Minister of Finance, Sri Mulyani’s forecast that was 5.17 percent.

The Indonesian government maintains optimism regarding reaching a 5.2 percent growth rate by the end of this year.

We are aiming for robust economic growth. We believe Indonesia’s economic potential is at 5.2 percent this year. We witnessed this again with yesterday’s 5.11 percent in the first quarter, and in the second quarter, we will assess further,” the current Deputy Minister of Finance, Suahasil Nazara, told the press at the Jakarta Convention Center on Monday, the 6th of May.

Indonesia’s economic expansion outpaced that of several trading partners, including Malaysia, which saw a 3.9 percent YoY increase, and Singapore, which recorded a 2.7 percent YoY growth. Additionally, Indonesia’s first-quarter economic growth exceeded that of the United States and Japan, which experienced 3.0 percent YoY and 1.2 percent YoY growth, respectively.

Conversely, India and China achieved higher economic growth rates, reaching 7.3 percent and 5.3 percent YoY in the first quarter of 2024, respectively.

Nazara viewed the first-quarter economic growth rate as a solid foundation for Indonesia and hoped for sustained positive growth throughout the rest of the year.

I believe the 5.11 percent result is promising. It provides a strong basis for us in 2024,” he added.

Nazara also highlighted several challenges Indonesia is facing in meeting the 5.2 percent economic growth target. He underscored the importance of identifying new sources of economic growth, such as products made by the Micro, Small, and Medium Enterprises (MSMEs), downstream, digitalisation, and green economy initiatives.

“To accelerate short-term economic growth, we need to boost the consumption of domestic products. Hence, one of our priorities in the National and Regional Budgets is to promote the purchase of domestic products, particularly those from MSMEs. This will significantly contribute to our economic growth in 2024,” he concluded.

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