Jokowi: Many Big Countries Are Entering Recession, But Indonesia’s Economy Is Capable of Growing
Jakarta – Minister of Finance (Menkeu) Sri Mulyani Indrawati said the government will pay attention to factors driving economic growth so that the growth target of 5.2 percent can be achieved in the second semester of 2024.
“Consumption, investment, exports, imports that we will pay attention to. In the second semester, namely the third and fourth quarters, we will continue to look at factors to maintain economic growth at a level of between 5.1 (percent) and even if possible reach 5.2 (percent),” said the Minister of Finance in Jakarta some time ago.
President Joko Widodo (Jokowi) said in the same vein that he is optimistic about the national economic conditions which recorded growth of 5.11 percent in the first quarter of 2024. Moreover, this figure was achieved when many large countries experienced a recession or decline in growth.
“Big countries have entered the abyss of recession, other countries also experienced a decline in growth but we were able to grow at 5.11 percent. I think we should be grateful for this because it is largely supported by consumption, but also by investment that continues to enter our country,” said President Jokowi.
Meanwhile, based on data from the Central Statistics Agency (BPS), Indonesia’s economic growth in the second quarter of 2024 grew by 5.05 percent (year on year/yoy) supported by strong domestic demand and increasing export performance. In terms of expenditure, household consumption as the main contributor grew by 4.93 percent (yoy) driven by the longer religious holidays and school holidays.
In addition, people’s purchasing power is still maintained along with controlled inflation, an increase in ASN salaries, the provision of the 13th salary with a 100 percent performance allowance, and the creation of new jobs that are greater in early 2024 amounting to 3.55 million. Meanwhile, government consumption grew positively by 1.42 percent, mainly supported by the absorption of capital expenditure and goods expenditure which were quite high, respectively by 39.5 percent and 6.1 percent.
