Highest Since 2019, Indonesia’s Economic Growth Reaches 5.11% in Q1 2024

Indonesia's economic growth
Indonesia's economic growth

Indonesia’s economic engine revved up in the first quarter of 2024, clocking in a notable 5.11% year-on-year growth. Despite a slight 0.83% contraction compared to the previous quarter, this surge marks the most robust first-quarter expansion since 2019.

Amalia Adininggar, Acting Head of the Central Statistics Agency (BPS), revealed that Indonesia’s GDP for the first quarter of 2024 reached Rp5,288.3 trillion based on current prices, while GDP based on constant prices hit Rp3,112.9 trillion.

“The first quarter of 2024 saw a 5.11% economic growth year-on-year, the highest among first quarters from 2019 to 2024,” emphasized Amalia during a press briefing on Monday (6/5/2024).

Despite the overall growth, the agriculture sector experienced a 3.54% contraction due to reduced crop production, particularly impacted by El Nino weather patterns.

Read also: Jokowi Affirms Electric Battery Plant Commences Production in Indonesia Next Month

“Every sector saw positive growth except for agriculture, which saw a significant decrease. The government sector notably surged by 18.88%,” she noted.

Wholesale and retail trade, as well as vehicle repair, also saw positive growth attributed to increased domestic and import production.

The Maluku and Papua regions stood out with a remarkable 12.15% economic growth in the first quarter, far surpassing the national average. Economic activities in Papua, including mining, government administration, and trade, were primary drivers.

Sulawesi followed with a 6.35% growth, primarily propelled by Central Sulawesi’s manufacturing and mining sectors.

Kalimantan secured the third-highest growth at 6.17%, led by East Kalimantan’s mining, construction, and trade activities.

In sum, the first quarter of 2024 witnessed Indonesia’s economic growth reaching a noteworthy growth rate of 5.11%, its highest since 2019. Despite a slight contraction compared to the previous quarter, this indicates a positive trajectory in the country’s economic performance. Various sectors, including government activities and retail trade, contributed to this growth, supported by seasonal factors like Ramadan and Eid preparations.