Indonesia GDP growth holds steady, stimulus expected

Published 05/02/2025, 12:40
Indonesia GDP growth holds steady, stimulus expected

On Wednesday, Indonesia reported an economic growth of 5.03% for the year 2024, mirroring the growth rate from 2023 and meeting market predictions. Despite this consistency, the growth rate is the slowest the country has seen in the past three years. This performance has sparked expectations of potential additional stimulus measures to boost the economy.

The growth figures, released by Statistics Indonesia, indicate that the nation’s economy has maintained a growth rate of around 5% since the COVID-19 pandemic. This rate falls short of the ambitious 8% target set by President Prabowo Subianto for the end of his term in 2029. The previous year’s growth was slightly higher at 5.05%.

In 2024, Indonesia’s economic expansion was supported by increased spending on political campaigns and elections. Additionally, a rise in investment contributed to the overall growth, balancing out the decline in net exports. Notably, investment growth reached 4.61% on a year-on-year basis, marking the highest increase in six years.

The consistency in growth rates comes as a positive sign for Southeast Asia’s largest economy, which has been striving for a robust recovery following the global pandemic. The data suggests that domestic factors such as political spending and investments are significant contributors to the nation’s economic resilience.

With the growth rate remaining below the president’s target and being the slowest in recent years, there is a growing anticipation that the government may introduce further economic stimulus measures. These measures would aim to accelerate growth and achieve the higher rates envisioned by the current administration.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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