Indonesia’s Economic Growth Projected to Reach 5.17 Percent in Q1 2024

Indonesia’s Economic Growth Projected to Reach 5.17 Percent in Q1 2024

Minister of Finance Sri Mulyani Indrawati has announced that Indonesia’s economic growth is expected to hit 5.17 percent in the first quarter of 2024. This positive projection is based on various factors such as consumer trends, manufacturing industry performance, foreign direct investment, and the price managers’ index (PMI).

Indrawati highlighted that international organizations like the International Monetary Fund, World Bank, and OECD have also made their own projections for Indonesia’s economic growth in 2024, with estimates ranging from five percent to 5.1 percent. Additionally, financial institutions like Bloomberg, BCA, Goldman Sachs, Moody’s, and Nomura have provided their own forecasts, further indicating a positive outlook for Indonesia’s economy.

The Finance Ministry’s projection takes into account the expected growth in government consumption post-2024 General Elections, increased distribution of civil servants’ salaries and Eid allowances, and well-controlled inflation. Indrawati expressed gratitude for Indonesia’s strong economic performance, citing high scores in PMI, manufacturing activities, and consumer confidence index.

Furthermore, the state treasurer emphasized that investments are expected to rise due to the development of national strategic projects and the new capital city Nusantara. Despite the resilience of Indonesia’s economy, the government remains vigilant of global dynamics that could potentially disrupt economic stability.

As the country moves forward, Indrawati stressed the importance of monitoring economic developments in the coming quarters. With a promising start to 2024, Indonesia is poised for continued growth and prosperity in the year ahead.