Indonesia's Finance Minister, Sri Mulyani, announced that the country's economy grew by 5.1% in the first quarter of 2024, marking its highest rate since 2015 and demonstrating Indonesia's resilience amidst global uncertainties.
Household consumption and non-profit institution spending increased by 4.9% and 24.3%, respectively, while government expenditure surged by 19.9%, fueled by infrastructure investments and a stable socio-political environment.
Despite the global economic slowdown affecting exports and imports, key exports like steel and minerals continued to grow. The minister emphasized the need for policy coordination to safeguard financial stability in the face of global risks.
While the global economic slowdown impacted Indonesia's export and import growth, actual exports grew by 0.5% in Q1 2024, driven by increased export services from rising foreign tourist arrivals. Major exports such as steel and minerals maintained strong growth rates of 35.8% and 5.4%, respectively. Imports also increased by 1.8% in Q1 2024, a slight contraction of 0.2% in net exports' contribution to growth.
The finance minister highlighted ongoing global risks, including uncertainty surrounding the direction of US Federal Reserve policy, escalating geopolitical tensions, and the incomplete recovery of global supply chains. The government pledged to continue monitoring and assessing the potential impacts of global dynamics on the domestic economy and fiscal condition, optimizing fiscal budgets to cushion purchasing power and drive economic growth.