INDONESIA’s domestic economic growth was better than originally projected, supported by increased exports, increased investment and the positive impact of the general election.

According to the Governor of Bank Indonesia (BI) Perry Warjiyo in Jakarta, Wednesday (02/210, 2024) said that in the fourth quarter of 2023, growth was recorded at 5.04% year-on-year, an increase from 4.94% year-on-year in the previous quarter, so that overall economic growth in 2023 reaches 5.05% year-on-year.

Meanwhile, based on business fields, he said that economic growth in 2023 will be supported by wholesale and retail trade, transportation and warehousing, information and communication, as well as the provision of accommodation, food and drinks.

Looking at the sectors supporting growth, according to him, household consumption and investment, especially for non-building, need to continue to be encouraged to support sustainable economic growth.

“Bank Indonesia will continue to strengthen its policy mix, especially through macro policies and payment system policies, as well as synergize closely with the government’s fiscal stimulus to encourage economic growth, especially from the domestic demand side,” said Perry.

Furthermore, he highlighted spatial national economic growth which remained strong and showed that several regions outside Java actually had higher growth performance.

He said that the highest economic growth performance occurred in Sulawesi, Maluku and Papua, followed by Kalimantan and Java. BI also maintains its projection for Indonesia’s economic growth this year, which is predicted to increase in the range of 4.7-5.5%.

“This prospect is influenced by improving exports in line with increasing world economic growth as well as continued good domestic demand supported by positive confidence in economic actors,” concluded Perry. [antaranews/photo special]