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.

Baca Juga:
BI Sebut Kontiribusi Ekonomi Syariah ke Perbankan Tergolong Rendah
BI: Cicilan Jadi Sebab Uang Belanja Masyarakat Cepat Habis
Bank Indonesia Leads Regional Dialogue on Banking Supervision and Policy Innovation

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)

 

The National Movement for Food Inflation Control (GNPIP) is an initiative launched by Bank Indonesia to tackle rising food prices and control food inflation. This program involves various measures such as enhancing market operations, improving regional cooperation for better distribution of food supplies, and promoting urban and digital farming. For instance, efforts include planting chili seeds, setting up greenhouses, and establishing digital farming infrastructure

GNPIP aims to stabilize food prices by ensuring an adequate and efficient food supply chain. This initiative is crucial as food inflation significantly impacts public expenditure and welfare. By addressing these issues, Bank Indonesia hopes to reduce food inflation to below 10%

The National Movement for Food Inflation Control (GNPIP) is part of the strategic efforts by the Indonesian government to stabilize food prices and manage inflation. It operates under the framework of the Tim Pengendalian Inflasi Pusat (TPIP), which works closely with regional counterparts, the Tim Pengendalian Inflasi Daerah (TPID).

In 2024, TPIP and Bank Indonesia have outlined seven strategic steps to control inflation, focusing on monetary and fiscal policies, controlling volatile food inflation (especially commodities like rice, chili, and shallots), ensuring smooth food supply and distribution, enhancing food productivity and downstreaming, and strengthening data availability for better policy formulation

These efforts also include initiatives such as optimizing local budgets to stabilize prices, strengthening agricultural infrastructure, integrating food stock data, and fostering inter-regional cooperation

The overall goal is to keep inflation within the target range of 2.5% ± 1% while promoting sustainable economic growth (Uki Ruknuddin)