Indonesia's economy has consistently grown around 5% over the last eight quarters despite various global economic challenges, making it an attractive destination for investors. This was stated by Coordinating Minister for Economic Affairs Airlangga Hartarto at the Macro Day Event organized by PT Verdhana Sekuritas Indonesia at the Deutsche Building in Jakarta on Monday, July 22, 2024. “You can see Indonesia’s growth is very strong globally. Indonesia is among the top three G20 countries in terms of growth and inflation. Government debt is also below 40%,” Airlangga stated in an official release from the Ministry of Economic Affairs on Tuesday, July 23, 2024. The Chairman of the Golkar Party added that government policies on price stability and social protection programs will further support national economic growth. Additionally, Indonesia’s real sector remains robust, with the Manufacturing Purchasing Managers Index (PMI) expanding for 34 consecutive months.
Moreover, Indonesia’s trade balance has shown a surplus for 50 consecutive months, and the tax ratio has consistently grown in double digits since 2022. This is accompanied by a fiscal deficit maintained below 3% of Gross Domestic Product (GDP) post-Covid-19 pandemic. According to Airlangga, one of the main drivers of Indonesia's economy is the infrastructure sector, followed by business efficiency, government efficiency, and economic performance. The former Minister of Industry outlined the vision for Indonesia Gold 2045, which aims to achieve a nominal GDP of USD 9.8 trillion and rank among the top five global economies. This goal requires a transformative approach focusing on science and technology, innovation, green economy, digital transformation, and economic integration. Airlangga elaborated that the government is currently focusing on the downstream processing of nickel minerals and infrastructure projects under the National Strategic Projects (PSN). International cooperation is pursued through comprehensive economic partnerships, such as the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). For food security, the government is building food estates in various regions in Indonesia. The government remains committed to supporting the broader technology and manufacturing sectors, including developing industries related to semiconductor components like electric vehicle components production.
