Indonesia’s Economic Growth in the First Trimester of 2024
In the first quarter of 2024, the Indonesian economy will show quite significant growth. This growth can be seen from various expenditure components which have varying performance. The following is a review of Indonesia’s economic growth in terms of expenditure during that period.
LNPRT consumption experienced the highest growth among all components, namely 24.29%. This growth reflects the increased activity of non-profit institutions that serve households, such as religious organizations, social foundations and charitable institutions. This increase can be caused by various more intensive social programs and activities in early 2024.
Government consumption grew by 19.90%, indicating an increase in government spending. This growth can be attributed to various infrastructure projects run by the government, increased social spending, as well as economic stimulus programs aimed at encouraging post-pandemic economic growth.
Household consumption grew by 4.91%, indicating an increase in people’s purchasing power. This growth may be driven by improvements in more stable economic conditions, increases in people’s incomes, as well as government policies that support household consumption.
Gross Fixed Capital Formation (PMTB) or investment grew by 3.79%. This growth reflects an increase in investment activity in Indonesia, both by domestic and foreign investors.
Factors contributing to this growth could include increased investor confidence in Indonesia’s economic prospects as well as various investment incentives provided by the government.
Imports experienced growth of 1.77%. This growth in imports reflects an increase in domestic demand for goods and services from abroad. This could be caused by increased domestic production activities which require imported raw materials, as well as increased public consumption of imported products.
Exports grew by 0.50%, indicating an increase in demand for Indonesian products in the international market. Even though export growth is relatively small compared to other components, this is still a positive indicator for the Indonesian economy, especially in the context of improving the trade balance and increasing the country’s foreign exchange.
Economic growth in the first quarter of 2024 shows signs of strong recovery after a period of global uncertainty triggered by the pandemic. Each component of expenditure plays an important role in driving economic growth.
Source: Bappenas
