Jakarta. Despite a more cautious perspective from the International Monetary Fund (IMF) and the World Bank, the government remains hopeful about achieving its 2024 economic growth target of 5.2 percent.

Chief Economic Minister Airlangga Hartarto expressed confidence in achieving the target despite global economic challenges. "This year, we remain optimistic about 5.2 percent, even though it may be 'rainy and somewhat gloomy', but Indonesia shines on its own. Our exports this year have relatively stabilized as we progress towards normalcy," he said at a press conference on Monday.

In comparison, The IMF forecasts Indonesia to achieve a growth rate of 5 percent for the current year and the following year. Meanwhile, the World Bank predicts a decrease in growth for both 2024 and 2025, with the growth rate projected to be 4.9 percent in each of those years.

Airlangga highlighted sustainable policies as key to future economic growth. However, he acknowledged the risks posed by global economic turmoil, such as the Ukraine-Russia conflict, Hamas-Israel tensions, and China's economic slowdown, leading to commodity price fluctuations.

"Advanced countries are still tightening monetary policies with high-interest rates for a longer period," he said.

The government, according to Airlangga, continues to maintain macroeconomic stability through a balance of fiscal and monetary policies to stimulate the economy. This includes controlling prices during national holidays.

Airlangga emphasized the government's efforts to promote new economic growth engines through digitization and sustainable energy transition. These initiatives include the ASEAN Zero Emission Community, green energy, and energy infrastructure.

"When we look at our economic growth in 2023, it's 5.05 percent, and quarterly it's 5.04 percent. With these figures, it is higher than the consensus forecast, which estimated 5.03 percent economic growth in 2023," said Minister Airlangga.

The Central Statistics Agency (BPS) on Monday reported that Indonesia's economy expanded by 5.05 percent in 2023, slower than the 5.3 percent growth in 2022. The main contributors to the Gross Domestic Product (GDP) were domestic consumption and infrastructure development.

Domestic consumption continued to grow due to controlled inflation and increased purchasing power, particularly in high-growth consumption groups. Notable growth was observed in the restaurant and hotel sectors, driven by increased tourism during school holidays, Christmas, and New Year.

The positive growth was attributed to ongoing infrastructure development and increased investment activities. Housing projects, including the Halim Perdana Kusuma Airport apartment complex, civil servant apartments in the new capital Nusantara, the million houses program, and toll road constructions such as Kisaran-Lebing Tinggi, Serpong-Cinere, Cinere-Jagorawi, and Cimanggis-Cibitung toll roads, supported this economic expansion.
 

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