Bank Indonesia Projects Strong Economic Growth of 4.7% to 5.5% for 2024

JAKARTA, RAKYAT NEWS – Bank Indonesia (BI) forecasts that Indonesia’s economic growth in 2024 will range between 4.7% and 5.5%, driven by robust domestic economic performance.

“Economic growth in 2024 is projected to be within the range of 4.7% to 5.5%,” said BI Governor Perry Warjiyo during a press conference on the results of the BI Board of Governors Meeting in Jakarta on Wednesday.

He noted that household consumption and investment are key drivers of the second quarter’s Gross Domestic Product (GDP) performance. Export growth, particularly in manufactured goods and mining products, such as metals, ores, and iron and steel, to major trading partners like India and China, has also contributed significantly.

From an industrial perspective, economic growth is primarily supported by the manufacturing sector, construction, and wholesale and retail trade.

Regionally, strong economic growth is expected across most areas, with the highest growth anticipated in Sulawesi-Maluku-Papua (Sulampua), Bali-Nusa Tenggara (Balinusra), and Kalimantan.

Considering these factors, economic growth in the third and fourth quarters is also expected to remain strong. This positive outlook is further bolstered by plans to increase fiscal stimulus from 2.3% to 2.7% of GDP and improved export performance driven by higher demand from key trading partners.

BI emphasizes the importance of strengthening the synergy between the government’s fiscal stimulus and BI’s macroprudential stimulus to ensure sustainable economic growth, particularly from the demand side.

BI continues to enhance policy coordination with the government to mitigate the risks posed by high global uncertainty. This coordination is pursued through the National Movement for Food Inflation Control (GNPIP) across various regions within the Central and Regional Inflation Control Teams (TPIP and TPID)