Bank Mandiri views Indonesia’s economy as remaining on a positive trajectory in 2024, supported by maintained macroeconomic stability and strengthening in various strategic sectors. Eka Fitria, Director of Treasury & International Banking at Bank Mandiri, forecasts that Indonesia’s economy will grow by 5% to 5.05% by the end of 2024. She highlights that the growth in the fourth quarter of 2024 will be supported by several domestic factors, including the upcoming regional elections (Pilkada) and the demand for services during the Christmas and New Year holidays. "Sectors related to mobility, such as hotels, restaurants, transportation, warehousing, and other services, will likely see positive impacts," Eka remarked during a virtual press conference on Wednesday, November 20, 2024.
Meanwhile, Bank Mandiri's Chief Economist, Andry Asmoro, noted that despite pressures from global economic uncertainties, particularly following the U.S. elections, Indonesia has been able to maintain economic resilience. "Despite global financial market fluctuations triggered by rising U.S. Treasury yields and a strengthening U.S. dollar, Indonesia's economy remains robust. The third-quarter growth reached 4.95%, supported by continued government spending and rising investments," Andry explained. He also highlighted that controlled inflation, averaging around 1.7% until October 2024, and a trade surplus of $24.4 billion by that time, serve as key indicators of Indonesia’s macroeconomic stability. Furthermore, consumer spending remains stable, with sectors such as electronics, entertainment, and mobility-related needs showing positive growth. "This momentum is expected to increase at the year's end, thanks to the Pilkada and holiday activities," he added. Andry also emphasized that sectors related to mobility, such as hotels, restaurants, transportation, and warehousing, are likely to continue their growth pattern, which has been consistent since 2022. Research from Bank Mandiri's Economic Team shows that in the third quarter of 2024, sectors such as other services, transportation and warehousing, and accommodation and food services grew significantly by 9.95%, 8.64%, and 8.33%, respectively. "We expect that growth in the fourth quarter will further solidify, driven by government spending and investments, particularly in infrastructure," Andry concluded.
