By: Dhita Karuniawati )*
The Indonesian government has succeeded in maintaining national economic growth amidst increasing global uncertainty. This can be seen from data from the Central Statistics Agency (BPS), which recorded that Indonesia’s economic growth in the first quarter of 2024 was 5.11 percent on an annual basis (yoy). This figure is higher than the first quarter of 2023, which was 5.04 percent. This achievement should be appreciated by the entire community because the government is able to show its commitment to increasing Indonesia’s economic growth with better performance.
BPS data states that economic growth will increase in the first quarter of 2024, supported by higher domestic demand. Household consumption grew by 4.91 percent (yoy) in line with the 2024 elections, national holidays and collective leave. Consumption of Nonprofit Institutions Serving Households (LNPRT) grew high by 24.29 percent (yoy) driven by activities for holding the 2024 elections and the Ramadan moment.
Government consumption increased by 19.90 percent (yoy) driven by an increase in goods spending, especially related to the implementation of the 2024 elections, as well as personnel spending. Investment grew by 3.79 percent (yoy), mainly supported by building investment as infrastructure development continued.
Export growth slowed by 0.50 percent (yoy), especially goods exports in line with the decline in commodity prices for main export products, amidst demand from several main trading partner countries which continued to grow.
Increased economic growth is also reflected in the business field and spatial aspects. In terms of Business Fields (LU), almost all LU in the first quarter of 2024 showed positive performance with high growth recorded among others in LU related to mobility, especially Transportation and Warehousing, Provision of Accommodation and Food and Drink, as well as Wholesale and Retail Trade. LU Processing Industry as the main contributor to growth also grew well in line with maintained domestic and global demand.
From a spatial perspective, economic growth in the first quarter of 2024 in most regions of Indonesia was higher than growth in the previous quarter, except for Sumatra and Java. The highest growth was recorded in Sulawesi-Maluku-Papua (Sulampua), followed by Kalimantan, Bali-Nusa Tenggara (Balinusra), Java and Sumatra.
Coordinating Minister for Economic Affairs Airlangga Hartarto said that in Quarter I – 2024, Indonesia was able to grow by 5.11 percent (yoy). This figure recorded the highest growth in the first quarter since 2015. The solid economic growth in the first quarter was also confirmed by various rating agencies which provided positive assessments that Indonesia’s economic resilience was maintained, supported by high and stable economic growth.
National economic growth achievements are also increasingly high quality, reflected in employment data (as of February 2024). The number of employed people increased by 3.55 million people to 142.18 million people compared to February 2023, while the number of unemployed people decreased by 0.79 million people to 7.2 million people compared to February 2023.
The proportion of formal workers increased to 40.83 percent, higher than February 2023 (39.88 percent), which was mainly driven by the increase in workers with worker, employee or employee status, which grew by 2.66 percent (yoy).
Meanwhile, the Minister of Finance (Menkeu), Sri Mulyani Indrawati, said that Indonesia’s economic growth achievements in the first quarter of 2024 had a positive impact on reducing the open unemployment rate. In the midst of global uncertainty, the Indonesian economy continues to show its resilience, as can be seen from the growth achievements in the first quarter. The quality of growth has also increased significantly, reflected in the creation of jobs which is quite high, thereby reducing the Open Unemployment Rate (TPT) to below pre-pandemic levels. In the future, the APBN will continue to be optimized to maintain economic stability, encourage accelerated growth and create jobs.
In the same vein, PLT Head of BPS Amalia Widyasanti said that Indonesia’s economic growth achievement in the first quarter of 2024 was the highest first quarter economic growth in the last five years.
If we look back, economic growth in the first quarter of 2019 was 5.06 percent. Then it dropped in 2020 to 2.97 percent due to the pandemic. Then in 2021 it fell further to 0.69 percent. However, in the first quarter of 2022, the country’s economy began to recover with growth of 5.02 percent and in 2023 it will increase slightly with growth of 5.04 percent.
Meanwhile, the Indonesian economy based on GDP at current prices (ADHB) was recorded at IDR 5,288.3 trillion. Meanwhile, based on constant prices (ADHK) it was IDR 3,112.9 trillion.
If we look at the business fields, all of them experienced positive growth except agriculture which contracted 3.54 percent. The cause is a decrease in production due to El Nino. Meanwhile, business fields with the highest contribution to the economy, such as processing industry, trade, construction and mining, are growing positively.
Indonesia’s economic growth in the first quarter of 2024 provides optimism regarding the future prospects of the national economy. This increase in growth is an indication that despite facing global challenges, Indonesia remains a strong economy and continues to attract investment which has a positive impact on national economic growth. We must continue to maintain this condition together by increasing synergy in anticipating global economic uncertainty and the potential for escalative world geopolitical tensions.
)* Contributor to the Indonesian Institute for Strategic Information Studies
