Jakarta. Indonesia’s economy grew 5.03 percent in 2024, slightly below the 5.05 percent recorded in 2023, demonstrating resilience despite global and domestic challenges, Finance Minister Sri Mulyani Indrawati said.

“Despite a year full of challenges and dynamics, strong collaboration, hard work, and the strategic role of the state budget allowed us to safeguard stability and achieve solid growth,” Sri Mulyani said on Wednesday.

Growth Engines
Household consumption grew 4.98 percent in the fourth quarter (Q4) and 4.94 percent throughout the year, supported by government measures to protect purchasing power. These included social assistance programs for low-income groups and strengthened food supply distribution to stabilize prices.

Job creation also played a crucial role in driving consumption, with 4.79 million new jobs added in 2024. Nonprofit institutions serving households (LNPRT) reported a sharp 12.48 percent growth for the year, driven by the 2024 general and regional elections, as well as national sports events.

Government spending expanded by 6.61 percent for the year and 4.17 percent in Q4, reflecting optimized state budget allocations to cushion economic shocks, safeguard consumption, and support national development.

Investment, as measured by gross fixed capital formation, grew by 5.03 percent in Q4 and 4.61 percent annually on the back of stable political and economic conditions. Fiscal and monetary policies further enhanced investor confidence, particularly in downstream industries.

Exports rose 7.63 percent in Q4 and 6.51 percent for the year, driven by increased trade in goods and services. The manufacturing sector also showed robust performance, with growth of 4.89 percent in Q4 and 4.43 percent for the year.

The trade sector recorded a 5.19 percent increase in Q4 and 4.86 percent for the year, reflecting steady domestic and international demand.

Sri Mulyani also pointed out the role of the state budget in protecting household purchasing power, boosting economic growth, and supporting development. Programs like the Family Hope Program (PKH), Staple Food Cards, subsidies, and compensation were key to maintaining social welfare.

Support for micro, small, and medium enterprises (MSMEs) was strengthened through initiatives such as the government microloans (KUR) program and tax incentives. Price stabilization policies, including food price stabilization measures (SPHP), also helped control inflation.

Looking Ahead
The government aims to reinforce economic fundamentals through initiatives such as economic transformation, food security improvements, renewable energy development, domestic industrialization of mineral resources, and labor productivity enhancement.

Sri Mulyani emphasized the importance of coordination among fiscal, monetary, and financial sector policies to maintain economic stability and growth. “The state budget will continue to act as a buffer against economic shocks while supporting national development priorities,” she concluded.