Main Ads

Ad

Indonesia Records 5.11% Economic Growth in Q1-2024 with Inflation Maintained at 2.58%

Sat, 27 Jul 2024 11:02 | News |   Editorial INTI


Indonesia Records 5.11% Economic Growth in Q1-2024 with Inflation Maintained at 2.58%

Jakarta, INTI - Indonesia has recorded an economic growth of 5.11% year-on-year (yoy) in the first quarter of 2024, with inflation maintained at around 2.58%. The national economy has demonstrated resilience in facing various global challenges, with recognition from various international institutions for Indonesia's economic stability.

World Bank's Recognition of Indonesia's Economic Stability

In a press conference after accompanying President Joko Widodo's meeting with World Bank Managing Director of Operations, Anna Bjerde, at the Merdeka Palace on Thursday, July 25, 2024, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the World Bank appreciated Indonesia's steady economic growth above 5% (yoy) with low inflation. According to the World Bank, Indonesia's economic growth still exceeds the projected global economic growth of around 2.6% to 2.7% (yoy) in 2024. The global economic growth is also expected to remain below 5% in 2025.

Government Programs Receiving Praise

The World Bank also praised various programs implemented by the Indonesian government, including poverty reduction and infrastructure programs for agriculture, including irrigation. The World Bank delegation visiting Lombok observed increased farmer incomes and well-functioning irrigation systems. In addition, agricultural outputs boosting the farmers' exchange rate also received recognition. Indonesia's stunting reduction program was also acknowledged by the World Bank.

Minister Airlangga conveyed that President Joko Widodo reported a decrease in the stunting rate over the past decade, from 37% in 2013 to 21% in 2023. Moreover, the extreme poverty rate has decreased from 6.2% in 2014 to 0.8% as of March 2024. The Village Fund of IDR 71 trillion, used for various rural activities, including stunting reduction, contributed to this success.

Government Priorities for Becoming a Developed Country

Regarding Indonesia's efforts to become a developed country, several priorities set by the government, such as infrastructure development to enhance connectivity and downstreaming programs, have been highly praised by the World Bank. President Joko Widodo mentioned that food security and clean energy are essential because Indonesia has programs related to clean energy, such as hydrosolar geothermal. The development of transmission infrastructure is crucial to achieve this goal.

President Joko Widodo also emphasized that the energy transition must consider prices that are affordable for the public. Therefore, a diverse energy source with interconnected transmission between islands is expected to make energy prices more affordable. Future government subsidies will be more targeted at those who deserve them.

Human Resource Development and Support for MSMEs

Minister Airlangga also revealed that President Joko Widodo highlighted the government's priority in developing human resources through retraining, reskilling, and upskilling programs tailored to future job needs. Additionally, 64,000 MSMEs have gained access to a green credit scheme through the People's Business Credit (KUR) mechanism.

Sustainability and Reforestation Programs

The World Bank noted several programs supporting electricity infrastructure, such as the best practices implemented by India in sourcing financing similar to PLN, supported by the World Bank. President Joko Widodo encouraged sustainability policies, including developing nurseries in various locations producing large-scale seedlings, such as 15 million seedlings in the New Capital City and around 6 million seedlings annually in Bali.

Minister Airlangga concluded by stating that Indonesia's large-scale and massive programs are expected to serve as examples for other countries.

Invitation to Attend INTI 2024

To closely observe the latest developments in technology and innovation in various sectors, including clean energy and agriculture, don't miss the Indonesia Technology and Innovation (INTI) 2024 exhibition at JI-EXPO on August 12-14, 2024. INTI is the largest technology and innovation exhibition in Indonesia, featuring over 700 exhibitors, four conference stages with more than 500 speakers, and is expected to attract over 25,000 visitors, most of whom are managers or decision-makers in various institutions and companies. More information can be accessed at INTI Asia.

Bank World Resources +12