No. 26/94/DKom
The Indonesian economy remains resilient despite increasing global uncertainty. Data published by BPS-Statistics Indonesia points to 5.11% (yoy) economic growth in the first quarter of 2024, up from 5.04% (yoy) in the previous period. Moving forward, Bank Indonesia projects economic growth in 2024 in the 4.7-5.5% (yoy) range, supported by domestic demand, with consumption and building investment growth persisting in line with ongoing national strategic projects (PSN).
Economic growth accelerated in the first quarter of 2024 on the back of higher domestic demand. Household consumption posted 4.91% (yoy) growth in response to the general election in early 2024, national holidays and collective leave days. Meanwhile, consumption by non-profit institutions serving households (NPISH) recorded high 24.29% (yoy) growth, driven by general election activities and Ramadan momentum. Moreover, government consumption grew 19.90% (yoy) due to the increasing procurement of goods, particularly for the general election in 2024, as well as personnel expenditures. Investment grew 3.79% (yoy) in the reporting period, predominantly underpinned by building investment due to ongoing infrastructure development projects. On the other hand, export growth moderated to 0.50% (yoy), specifically goods exports in line with lower commodity prices for Indonesia's main exports, despite demand in major trading partner countries maintaining growth.
Faster first-quarter economic growth was also reflected in sectoral and regional performance. Nearly all economic sectors in the first quarter of 2024 demonstrated positive performance, led by mobility-related sectors, particularly transportation and logistics, accommodation and food service activities as well as wholesale and retail trade. As a dominant contributor to growth, the manufacturing industry remained in expansionary territory in line with maintained domestic and global demand. Meanwhile, economic growth in most regions of Indonesia accelerated in the first quarter of 2024, excluding Sumatra and Java. Regional growth was led by Sulawesi-Maluku-Papua (Sulampua), followed by Kalimantan, Bali-Nusa Tenggara (Balinusra), Java, and Sumatra.
Jakarta, 6th May 2024
Communication Department
Fadjar Majardi
Director
