Indonesia's economic growth projected below 5.2%

Indonesia’s Finance Minister Sri Mulyani Indrawati has forecast a growth rate of 5.01% for the country’s economy in the fourth quarter of 2024.

The figure is higher than that of Q3 at 4.95%, but is still below the 5.04% growth recorded in the same period last year.

Minister Sri Mulyani acknowledged that the economy is expected to grow at 5% from 2022 to 2024, despite global economic slowdowns, protectionism, and conflicts that have caused commodity price volatility.

She assured that the government is committed to ensuring the economy continues to increase above 5% in this year and the next year, with a focus on maintaining price stability and keeping inflation low.

In January-September, Indonesia’s economy expanded by 5.03%, falling short of the original target of 5.2%. Earlier this year, the government had already revised down the growth forecast for 2024 to 5.1%.

In the first quarter of this year, the economy expanded by 5.11%, followed by 5.05% growth in the second quarter, and 4.95% in the following quater.

Despite the slower-than-expected growth, the consumer price index (CPI) in November remained at a low 1.55%, one of the lowest rates globally.

From a trade perspective, the country continued to experience a trade surplus for the 54th consecutive month, underscoring the country's resilience and its potential as a producer of exportable goods. Sectors such as manufacturing, trade, and construction have also contributed to the economic growth.

President Prabowo Subianto expressed his confidence that solid economic performance in 2024 will lay a foundation for faster development and growth in 2025 and the next five years.

The government has already prepared the 2025 national budget (APBN) based on the assumption of a dynamic yet unpredictable global economy, with the growth target for 2025 set at 5.2%, unchanged from the original forecast.