Jakarta, IO – Finance Minister Sri Mulyani said Indonesia’s economy can potentially grow by 5.2 percent in 2024 in line with the projections from several national and international financial institutions, per Katadata, Thursday (4/1).
According to her, there are a number of aspects that will contribute to this growth rate. One of them is relatively strong domestic consumption in line with increased economic activity during religious holidays, year-end holidays and the run-up to the elections.
Inflation is also relatively controlled to maintain purchasing power. Meanwhile, budget absorption through government spending in 2023 exceeded 100 percent.
In her view, this is able to support government procurement and indirectly contribute to public consumption.
“Building and non-building investment is starting to trend upwards along with the process of completing the national strategic program (PSN),” she said.
A number of international financial institutions also support this prediction. The International Monetary Fund (IMF) and Bloomberg Consensus put it at 5 percent, the World Bank at 4.9 percent.
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Nevertheless, Sri Mulyani said there are a number of challenges confronting Indonesia. The most visible pressure is global economy weighed down by rising geopolitical tensions in various regions of the world.
“Now, the geopolitics temperature is rising where more than 74 countries in the world are going to the poll amid a global economic slowdown,” explained Sri Mulyani. (un)