The new projection indicates economic growth of 5.0 percent for this year and 5.1 percent for 2025. Earlier, the World Bank had predicted 4.9 percent growth for 2025.
"Despite global inflation pressures, Indonesia's inflation rate remains within the target range of below 3 percent," Hartarto noted.
He added that Indonesia's macroeconomic fundamentals are relatively strong compared to other countries.
As an example, he cited the current account deficit, which stands at 0.64 percent of the gross domestic product (GDP). This deficit is considered safer than that of other nations such as Chile (4.40 percent) and India (3.32 percent).
The real sector in Indonesia is also showing promising prospects, with sustained activity in both manufacturing (as indicated by the Purchasing Managers' Index) and consumer confidence (as reflected in the Consumer Confidence Index).
"Indonesia's external sector remains robust, acting as a buffer against global pressures," Hartarto said, adding that the country has recorded a trade surplus for 49 consecutive months.
The trade surplus reached US$2.93 billion in May 2024.
The financial sector has also contributed positively to the economy. Bank credit grew by over 11 percent this year, surpassing the 9–10 percent growth recorded in the previous year.
Investment realization from January to March 2024 increased by 22.1 percent year-on-year to reach Rp401.5 trillion (approximately US$24.43 billion).
The government has projected economic growth in 2025 in the range of 5.1–5.5 percent, driven by increased household consumption, purchasing power, and investment.
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Translator: Bayu Saputra, Anton Santoso
Editor: Rahmad Nasution
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