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Langgam Pos - Indonesia's economy is projected to grow by 5.1-5.2% for the remainder of the year, according to the Ministry of Finance.
Febrio Kacaribu, Head of the Fiscal Policy Agency (BKF) at the Ministry of Finance, expressed optimism that Indonesia's economy could maintain growth above 5% in the upcoming quarters.
"Our outlook is around 5.1% to 5.2%, so there is still a chance," Febrio told the media at the Ministry of Finance's Djuanda Building in Jakarta on Tuesday (August 6, 2024). However, he also acknowledged that achieving this target comes with challenges due to ongoing global economic uncertainties.
"Many countries are struggling. Achieving a growth rate of 5.1 to 5.2% would be an outstanding achievement," added Febrio.
Household Consumption
Household consumption remains the largest driver of Indonesia's economy. In the second quarter of 2024, this sector grew by 4.93%. Other significant contributors include investment, exports, and government spending.
"If we can maintain this, it will certainly be a foundation for continued growth," he noted.
Support for Economic Growth
The Central Statistics Agency (BPS) recorded a 4.93% annual growth in household consumption. Coordinating Minister for Economic Affairs Airlangga Hartarto views this figure as still relatively high.
The growth rate for household consumption in Q2-2024 was nearly identical to Q1-2024's rate of 4.91%, though it has slowed compared to 5.22% in Q2-2023 and 5.52% in Q2-2022.
"Consumption figures from Q1 were lower than Q2, indicating an increase. A 4.9% growth rate is still high," said Minister Airlangga at a press conference at the Ministry of Economic Affairs, Jakarta, on Monday (August 5, 2024).
He acknowledged that this rate is below the national economic growth rate of 5.05%. Not all sectors are experiencing growth at this rate.
"Indeed, it is below the national growth rate. Not all sectors are outperforming the national growth. The manufacturing sector, for instance, is growing below the national average," he explained.
Minister Airlangga noted that some sectors are growing faster than the national average, such as construction and food and beverages. He emphasized that this is a normal occurrence.
"Only a few sectors, including construction and food and beverages, are exceeding the national average. This is a normal trend, but overall, the outlook remains positive," he stressed.
Comparison with Other Countries
Airlangga further emphasized that the 4.93% growth in household consumption is still higher than in many other countries. Additionally, this consumption continues to make a significant contribution to the Gross Domestic Product (GDP).
"Compared to other countries, our consumption growth is relatively high, and its contribution remains dominant, with consumption accounting for 54.53% of the total GDP," he stated.
"This consumption was supported by Ramadan, Idul Fitri, and increased mobility, including activities in hotels, restaurants, and cafes," added Minister Airlangga.
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