President Joko Widodo was happy with reports of Indonesia’s economic growth. The Central Statistics Agency (BPS) explained that Indonesia’s economy will grow by 5.11% in the first quarter of 2024. Jokowi said that Indonesia’s fairly fertile economic growth shows optimism amidst the sluggish global economy. The reason is, the Indonesian economy is still growing amidst the conditions of many countries in recession and experiencing stagnant growth, and many are even contracting.
“Yes, this creates optimism. That other countries, big countries, one, two, three have entered the brink of recession, other countries have also seen their growth decline, but we are able to continue to increase by 5.11%,” said Jokowi met after inaugurating the IDTH Telecommunication Equipment Testing Center, Tuesday (7/5/2024).
Jokowi continued; two things contributed greatly to rapid economic growth in the first quarter of 2024. First, public consumption, second, investment that continues to enter Indonesia.
“I think we should be grateful for that because it is supported a lot by consumption, but also secondarily supported by investment that continues to enter our country,” explained Jokowi.
On the other hand, Minister of Finance Sri Mulyani Indrawati stated that this positive national economic growth was more or less supported by strong domestic demand and optimal support from the APBN as a shock absorber. This condition makes Indonesia one of the countries that is able to survive amidst global economic uncertainty.
“Even though the global economic situation tends to weaken, and financial market turmoil puts increasingly heavy pressure, the resilience of the Indonesian economy remains well maintained,” said Sri Mulyani, quoted from the Instagram account @smindrawati.
Furthermore, Sri Mulyani explained that in terms of production, leading sectors continued to grow positively. The manufacturing sector in the first quarter of 2024 grew 4.1% (YoY), driven by strong domestic demand and downstream policies.
Strong domestic demand was mainly supported by an increase in the food and beverage processing industry which grew 5.9% (YoY). The trade sector also grew by 4.6% (YoY), mainly driven by increased demand during Ramadan.
“Positive growth trends also occurred in all regions. Java Island, as the main contributor to the economy, grew relatively strongly at 4.84% (YoY). Other regions such as Sumatra grew 4.24% YoY; Bali and Nusa Tenggara 5.07% YoY “; Sulawesi 6.35% YoY; Kalimantan 6.17% YoY; Maluku and Papua grew 12.1% YoY,” he explained.
Then, he also said that this solid economic growth was able to encourage national job creation. As of February 2024, the number of workers nationally was recorded to have increased by 3.55 million people compared to the same period last year. The Open Unemployment Rate fell significantly to 4.82%, from the previous 5.32% in February 2023.
May 7, 2024, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-7328484/ekonomi-ri-tumbuh-5-11-jokowi-negara-lain-resesi-pertumbuhannya-turun)