Indonesia's economy has demonstrated strong resilience, maintaining a solid 4.95% growth rate (yoy) in Q3 2024, reflecting its economic strength and competitiveness. Key indicators, such as the manufacturing PMI at 51.2, robust domestic demand, and the Consumer Confidence Index (IKK) at 127.7 in December 2024, continue to show positive trends. The government's efforts to boost the economy during the holiday season, including free homecoming programs, discounted flight tickets, and large-scale sales events like Harbolnas, BINA, and EPIC Sale, have significantly contributed to economic activity, helping the country stay on track to meet its 5.1% growth target for 2024.
To sustain this growth, the government has introduced various economic stimulus measures, such as food assistance, electricity discounts, VAT subsidies for property and automotive, and tax incentives for labor-intensive sectors. The middle class, which makes up 66.35% of the population, is a key driver of this growth, and the government continues to support this demographic through subsidies, tax incentives, and business financing. Additionally, strategic initiatives like the development of Special Economic Zones (KEK) and investment in downstream industries, such as the significant rise in nickel product exports, are expected to further boost Indonesia's economic trajectory. By focusing on investment and industrial development, the government aims to maintain momentum and achieve sustainable growth in the coming years.
