Slowing Down, 2024 Economic Growth at 5.03%

JAKARTA. Statistics Indonesia (BPS) recorded that Indonesia's economy, measured by Gross Domestic Product (GDP), grew by 5.03% in 2024.

Compared to the economic growth in 2023, which was 5.05%, the growth rate in 2024 experienced a slowdown.

From the production side, the highest growth occurred in the other services sector, which was 9.80%. Meanwhile, the manufacturing industry only grew by 4.43%.

Furthermore, the trade, automotive repair sector grew by 4.86%, the agriculture, forestry, and fisheries sector grew by 0.67%, and the construction sector grew by 7.02%.

Additionally, the accommodation and food and beverage services sector grew by 8.56%, the other services sector grew by 9.80%, the health services and social activities sector grew by 8.11%, and other sectors grew by 5.20%.

Growth Components

Meanwhile, on the expenditure side, the highest growth occurred in the non-profit institutions serving households (LNPRT) expenditure component, which grew by 12.48%.

The household consumption component recorded a growth of 4.94%, government consumption grew by 6.61%, Gross Domestic Fixed Capital Formation (investment) increased by 4.61%, while exports and imports grew by 6.51% and 7.95%, respectively.

Growth-Inhibiting Factors

Quoting CNBCIndonesia.com, the slowdown in economic growth in 2024 was caused by a decline in Indonesia's net exports compared to the previous year. This means that import performance grew at a higher rate than exports.

The net export GDP at current prices in 2024, which is the GDP at current prices for exports minus the GDP at current prices for imports, was recorded at Rp 513.7 trillion.

Meanwhile, Indonesia's net export GDP at current prices in 2023 was recorded at Rp 514.36 trillion.

Acting Head of Statistics Indonesia (BPS), Amalia Adininggar Dwiastuti, stated that since net exports were lower, their contribution to economic growth appeared negative at -0.01%. "This is one of the factors holding back higher growth," said Amalia.

Stagnant Growth

With a recorded growth of 5.03% in 2024, it indicates that Indonesia's economic growth trend over the past decade has remained stagnant at around 5%.

In the last ten years, the highest economic growth occurred in 2022 at 5.31%, while the lowest growth was recorded in 2020 at -2.07%. (ASP/KEN)