Economic Growth Projected to Reach 5.2 Percent in 2024

President Jokowi on the occasion of the Presentation of Government Statement on the Bill on 2024 State Budget and Its Financial Note before the Plenary Session of the House of Representative on the commemoration of the 78th Independence Day of the Republic of Indonesia, at Ruang Rapat Paripurna, Gedung Nusantara MPR/DPR/DPD RI, Senayan, Jakarta, Wednesday (16/08). (Photo: Screenshot)

President Joko “Jokowi” Widodo delivered his address about the basic assumption of the 2024 macro economy on the Presentation of Government Statement on the Bill on 2024 State Budget and Its Financial Note before the Plenary Session of the House of Representative’s First Meeting Session 2023-2024 at Nusantara Building MPR/DPR/DPD RI, Jakarta, Wednesday (16/08). The national economic growth was predicted at 5.2 percent in 2024. To achieve the growth target, President pointed out that the Government would continue to do any efforts to maintain macro-economic stability.

‘Taking into account our economic potential and at the same time calculating future risks, the basic assumptions of macro economy as the basis for drawing up the 2024 State Budget bill are as follows: the 2024 economic growth is forecast to reach 5.2 percent. Conducive and peaceful situation ahead of the 2024 General Elections and Simultaneous Regional Elections must be realized. The implementation of new Laws will also bring benefit for structural strengthening,” the President explained.

Meanwhile, the inflation would be maintained at a range of 2.8 percent. The President said that the role of the State Budget would still be optimized to mitigate inflation pressures, be it due to climate change or external turmoil. Furthermore, the Government would also maintain strong coordination among members of the Central Inflation Control team (TPIP) and Regional Inflation Control Team (TPID). Then, the average of Rupiah exchange rate is projected to hover around Rp15,000 per US dollar and the average 10-year Government Bond rate is predicted to reach the level of 6.7 percent.

“Coordination between members of the Financial System Stability Committee will remain anticipative and responsive to encounter potential external turmoil,” the President said.

Indonesia’s crude price (ICP) was estimated in the range of 80 US dollars per barrel. In contrast, oil and natural gas lifting was estimated to reach 625 thousand barrels per day and 1.03 million barrels of oil equivalent per day respectively.

On the occasion, the President emphasized the role of the State Budget was pivotal and strategic to support, facilitate, and determine the direction of socio-economic policy, and competitiveness of the national defense and security.

“The future fiscal policy is formulated with the aim of accelerating the achievement of national development targets and priorities. The agenda of economic transformation, including natural resources downstreaming, both mining and food commodities, would be continued. Protection and improvement of people’s welfare, particularly those with low income, would remain an important focus to sustain structural improvement fundamentally. (MAY/TGH/DND/FID/UN) (GA/LW)