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October 18, 2024 | 07:15 pm
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati projects Indonesia’s economic growth to reach 5.1% by the end of 2024, with growth above 5% expected to continue through the third quarter, spanning July to September.
The minister stated that household consumption remains a key positive driver, particularly among the upper-middle class. “Household consumption growth is stable,” she said during a press conference following the Financial System Stability Committee's (KSSK) regular meeting at Bank Indonesia on Friday, October 18, 2024.
The economic outlook was delivered following a final meeting with other KSSK members, including the Governor of Bank Indonesia, the Chairman of the Financial Services Authority (OJK), and the Chairman of the Deposit Insurance Corporation (LPS).
For 2025, the government forecasts economic growth to stabilize at 5.2% year-on-year, driven primarily by robust domestic demand and ongoing structural reforms. “Domestic demand remains strong,” said Sri Mulyani, who is poised to continue as Finance Minister in the upcoming Prabowo administration.
The steady household consumption comes amid global geopolitical challenges, with the manufacturing and trade sectors serving as major growth pillars due to stable purchasing power and increased value addition.
Several government policies aimed at maintaining consumer purchasing power and price stability are credited as key growth drivers. Social protection programs will continue to be implemented through the end of 2024, according to the minister.
On the fiscal front, Sri Mulyani noted that simultaneous regional elections scheduled for November, following the general election cycle in February, are expected to positively impact public spending.
Additionally, increased mobility during the year-end holiday season in the fourth quarter is anticipated to contribute positively to the economy, she added.
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