Statistics Indonesia (BPS) reveals that Indonesia’s economic growth throughout 2024 was recorded at 5.03 percent, lower than the previous year’s 5.05 percent and still below the target of 5.2 percent set in the 2024 State Budget (APBN).
“The Indonesian economy grew 5.02 percent year on year in the fourth quarter of 2024 and 5.03 percent throughout the year,” BPS Head, Amalia Adininggar Widyasanti, told a press conference in Jakarta, on Wednesday, February 5, 2025.
The Indonesian nominal GDP in 2024 was recorded at Rp22,138.96 trillion (US$1,357 billion) and its real GDP at Rp12,920.28 trillion (US$791,93 billion). In 2023, the country’s nominal GDP was recorded at Rp20,301.48 trillion (US$1,234 trillion) and its real GDP at Rp12,301.48 trillion (US$753,9 billion).
Amalia cited that the slowdown in economic growth in the fourth quarter of 2024 was influenced by a number of domestic factors, especially public consumption.
The real sales index only grew 1.1 percent annually or 3.01 percent cumulatively in the fourth quarter. Motorcycle sales also contracted 3.06 percent annually, although they grew 1.54 percent quarterly.
In addition to domestic factors, the economic slowdown in trading partner countries also had an impact on the Indonesian economy. The United States’ economic growth slowed from 2.9 percent to 2.8 percent, China fell from 5.4 percent to 5 percent, and India slowed from 8.2 percent to 6.5 percent.
Government projections
Minister of Finance Sri Mulyani Indrawati stated that despite global economic pressures in the fourth quarter of 2024, Indonesia’s economic growth remained at 5 percent. She noted that Indonesia’s economic growth in the first and second quarters of 2024 was 5.11 percent and 5.05 percent respectively, while the third quarter slowed slightly to 4.95 percent.
Indonesian Central Bank (BI) Governor Perry Warjiyo said that economic growth in the fourth quarter was shaken by low domestic demand, both consumption and investment.
BI estimates that economic growth in 2024 would be slightly below the midpoint of the 4.7-5.5 percent range.
