During a press conference following the Bank Indonesia (BI) Board of Governors Meeting in Central Jakarta on Wednesday (16/10/24,) BI Governor Perry Warjiyo projected that Indonesia’s economy will grow between 4.7 and 5.5 percent throughout 2024, affirming BI’s commitment to strengthening policy mixes to further boost economic growth, according to reporting from Tempo.
“BI will work closely with the government’s fiscal stimulus policies,” Perry said noting that domestic demand has been a driver of economic growth in Q3 of 2024. Investment, particularly supported by the completion of several National Strategic Projects (PSN), has shown resilience. “From a business perspective, growth is fueled by the manufacturing industry, construction, and wholesale and retail trade,” he explained.
Furthermore, Q4 of 2024 is anticipated to witness continued robust economic growth, primarily driven by increased investment and strong household consumption. Government spending at the year-end will also contribute to this growth, says Tempo.
Perry argued that Indonesia’s economy would ideally grow more rapidly in 2025. However, achieving this will require sustained efforts to strengthen structural reform policies and promote labor-intensive economic sectors.
Meanwhile, he observed a global economic slowdown, partly attributed to geopolitical tensions in the Middle East. “Globally, economic growth in 2024 is projected to reach 3.2 percent with a slowing trend,” he said.
Tempo reports that he emphasized that policymakers need to exercise caution in formulating policy responses to mitigate the impacts of global conditions. This includes encouraging foreign capital inflows and maintaining exchange rate stability to support economic growth and stability.
Source: Tempo
Stock image from Wikimedia Creative Commons
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