Indonesian Economy Shows Resilience Amid Global Challenges: Projected to Grow 5.11% in Q1 2024

Jakarta, INTI – Amid global economic challenges, Indonesia's economy continues to demonstrate resilience and stability. Various international institutions project global economic growth in 2024 to hover around 3% year-on-year (yoy). Despite this, Indonesia's economic fundamentals remain robust, reflecting strong resilience to global shocks. In the first quarter of 2024, Indonesia's economic growth reached 5.11% yoy, with April's inflation rate well-maintained within the target range of 2.5±1%, standing at 3.00% yoy.

"Indonesia ranks among the top five G20 countries with economic growth around 5%, and we are also among the top five countries with the lowest inflation rates. This gives us confidence in our ability to maintain this stability," said Coordinating Minister for Economic Affairs Airlangga Hartarto during a courtesy call with Nikkei Inc. executives, including Mr. Hidenaka Kato and Mr. Daisuke Arakawa, at the Main Building Imperial Hotel in Tokyo, Japan, as part of the 29th Nikkei Forum Future of Asia on Friday, May 24.

Minister Airlangga also highlighted Indonesia's digital economy, which currently stands at USD 90 billion and is expected to reach USD 130 billion by 2025. This growth aligns with the potential increase in ASEAN's digital economy, a region with approximately 600 million inhabitants. With the implementation of the Digital Economy Framework Agreement (DEFA), the digital economy in ASEAN, initially projected to reach USD 1 trillion by 2030, could potentially grow to USD 2 trillion.

Addressing cybersecurity concerns in digital technology, Minister Airlangga emphasized the importance of digital infrastructure availability in expanding internet network coverage.

"Cybersecurity will always be a challenge in the digital economy. Given Indonesia's archipelagic nature, relying solely on fiber optics for internet provision is not feasible," he stated.

When asked about the influx of global tech CEOs to Indonesia, Minister Airlangga mentioned that Indonesia has strategically positioned its digital economy as the next primary growth engine. "Indonesia is home to 10 unicorns and 2 decacorns," he noted.

During the cordial meeting, Minister Airlangga and Mr. Daisuke discussed various topics, including downstream industrialization, the upcoming visit of the OECD Secretary-General to Jakarta, market share of Indonesia's automotive sector, and the significance of OECD membership for Indonesia.

"Joining the OECD will help Indonesia escape the middle-income trap by undergoing a second phase of economic reforms through benchmarking with best practices from other countries. This will attract more investments into Indonesia," Minister Airlangga concluded