President Prabowo Subianto held a limited meeting with the National Economic Council (DEN) at the Presidential Palace in Jakarta on Tuesday, November 5, 2024, discussing measures to boost Indonesia’s economic growth in the fourth quarter (Q4) of this year, higher than the Q3 2024 growth on only 4.95 percent.
DEN Deputy Chairwoman, Mari Elka Pangestu, said that one of the main issues discussed was the weakening purchasing power of the Indonesian middle class, which only grew 4.9 percent, the lowest in the last 13 years.
“This must be addressed with the right program, including the possibility of Direct Cash Assistance (BLT) to maintain consumption in the middle class,” Mari cited.
In addition to increasing purchasing power, DEN recommends optimizing the government spending as the second option. This step is considered crucial to spur the economy through strategic projects that can drive demand and employment.
The third option that was also highlighted in the meeting was encouraging the government to improve the investment climate to support long-term economic growth.
Prabowo appreciated the input from DEN and asked forimmediate follow-ups to strengthen the foundation of the national economy amid the global slowdown.
“We need stronger investment, maintained purchasing power, and targeted government spending to maintain the momentum,” Mari said.
With these steps, she added, the government hopes to achieve stronger economic growth in the fourth quarter and maintain Indonesia’s economic stability in the coming year.
“The key is how to improve the investment climate because in order to grow higher, we certainly need investment,” Mari said.
In the meeting, Prabowo expressed hopes that there will be a significant increase in the fourth quarter of this year, following the cumulative growth in January-September of 5.03 percent.
