Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo forecast Indonesia's economic growth in the 2024 first (Q1) and second (Q2) quarters to be higher than in the 2023 fourth quarter (Q4), with support from strong domestic demand.

"Economic growth in the first and second quarters of 2024 is predicted to be higher than the fourth quarter of 2023, supported by domestic demand that remains strong from household consumption in line with Ramadan and Eid al-Fitr," he stated here on Wednesday.

He made the statement at a virtual press conference on the results of the meeting of the BI Board of Governors for April 2024.

According to data from Statistics Indonesia (BPS), Indonesia's economic growth was recorded at 5.04 percent year-on-year in Q4 of 2023.

Warjiyo noted that Indonesia's economy remained resilient amid increasing global uncertainty.

Building investment was higher than forecast, supported by the continuation of National Strategic Projects (PSN) in several regions and the development of private properties as a positive impact of government incentives.

However, he emphasized that household consumption and non-building investment should continue to be pushed to support the continuity of national economic recovery.

Meanwhile, the performance of goods' exports is not yet strong, influenced by the decline in commodity exports in line with falling commodity prices and demand from main trading partners, such as China, which is still weak.

In terms of the business fields, the processing industry, information and communications, wholesale and retail trade, and construction sectors are predicted to grow strongly.

Spatially, economic growth in all regions remains good, supported by domestic demand, especially household consumption.

Furthermore, Indonesia's economic growth in 2024 is projected to lie in the range of 4.7 percent to 5.5 percent.

BI has stated that going forward, it will continue to bolster the synergy of policies with the government, including through government fiscal stimulus and BI's macroprudential stimulus, to support sustainable economic growth, especially in terms of domestic demand.

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Translator: Martha Herlinawati, Raka Adji
Editor: Azis Kurmala
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