Indonesia's economic growth, a crucial focus for both the government and citizens, saw a 5.11% increase in the first quarter of 2024, according to the Central Statistics Agency (BPS). This marks a 0.6% rise from the previous quarter, driven by strong domestic demand, heightened household and government consumption due to upcoming elections, and numerous public holidays. Projections indicate continued robust growth, ranging from 4.7% to 5.5% in the next quarter. The highest growth was observed in the administration, government, defense, and compulsory social security sectors, which increased by 18.88%. Key factors contributing to this growth include high consumption levels, boosted by increased minimum wages and government social assistance; strong investment supported by infrastructure programs and political stability; increased export values of Indonesian commodities; higher import values driven by capital goods and raw materials; and government policies aimed at consistent economic enhancement.

However, challenges such as decreased household consumption, weak global demand, high inflation, insufficient human resources, and budget deficits persist, notably seen during the COVID-19 pandemic's economic downturn in late 2019. In response, the government is focused on maintaining stable policies, providing social assistance, boosting exports, accelerating microcredit distribution, and ensuring strong coordination through the state budget (APBN) with inflation control teams. Additionally, stimulating consumer spending, keeping inflation low at 1%, and enhancing workforce skills through training are vital. Supporting government policies, job creation, and investment in growth-enhancing companies are essential for economic stability. Despite efforts to boost growth, occasional slowdowns are inevitable, necessitating continued government intervention. The roles of micro, small, and medium enterprises (MSMEs), cooperatives, and fishermen are significant, particularly through product diversification and value addition to exports, supported by technological advancements and increased industrial creativity.

Source: https://www.goodnewsfromindonesia.id/2024/06/23/peningkatan-pertumbuhan-ekonomi-indonesia-pada-2024