Jakarta, Indonesia Sentinel — Indonesia economy expanded by 5.03% in 2024, with five key sectors serving as the main drivers of growth. According to Statistics Indonesia (BPS), houshold consumptions emerged as the largest contributor for economic growth 2024.
Acting BPS Chief Amalia Adininggar Widyasanti stated that household consumption was the largest contributor to economic growth, despite growing at a rate of 4.94%, slightly below 5%. Household consumption accounted for 54.04% of total economic activity, making it the most significant component.
She highlighted that the transportation and communication sectors experienced high growth as public mobility increased, driving demand for transportation and communication services. This trend was reflected in the rising number of rail, sea, and air passengers.
“Household consumption grew in line with increased activity and mobility,” Amalia said at a press conference on Wednesday (February 5) as reported by CNN Indonesia.
Additionally, strong growth was observed in the restaurant and hotel sectors, supported by increased tourism activities during school holidays and major national religious holidays.
Key Economic Drivers
There are five key economic drivers contributing to Indonesia’s economic growth in 2024. According to CNN Indonesia, the key drivers includes:
- Household Consumption – The largest contributor to growth, rising by 4.94%.
- Gross Fixed Capital Formation (GFCF) – Grew by 4.61%, contributing 29.15% to GDP. This was supported by increased foreign direct investment (FDI) and domestic investment (PMDN).
- Exports – Expanded by 6.51%, contributing 22.18% to GDP, driven by increased demand for electrical machinery, nickel, and footwear.
- Government Spending – Grew by 6.61%, contributing 7.73% to GDP.
- Non-Profit Institutions Serving Households (NPISH) Consumption – The fastest-growing sector, increasing by 12.48%, though it accounted for only 1.26% of GDP. This surge was largely attributed to heightened activities related to Indonesia’s 2024 elections.
Ministry Response
Indonesia’s 5.03% year-on-year (YoY) growth fell short of the government’s 5.2% target and was slightly lower than the 5.05% expansion recorded in 2023.
However, Finance Minister Sri Mulyani Indrawati and Coordinating Minister for Economic Affairs Airlangga Hartarto viewed the Indonesia economy 2024 as resilient despite global uncertainties.
“2024 was a year full of challenges and dynamics, both globally and domestically. However, thanks to hard work, strong synergy, and the strategic role of the state budget as an instrument to safeguard Indonesia’s economy, we managed to maintain stability and growth through the end of the year,” Sri Mulyani said in an official statement on Thursday, February 6, 2025, as reported by CNBC Indonesia.
From an expenditure perspective, household consumption remained stable at 4.94%, reflecting maintained consumer spending, controlled inflation, and increased public mobility.
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Coordinating Minister for Economic Affair, Airlangga Hartarto emphasized that Indonesia’s economic performance remained strong compared to other ASEAN countries.
Regionally, economic growth was robust across all areas, with Bali-Nusa Tenggara, Kalimantan, Sulawesi, Maluku, and Papua recording growth above the national average. The metal processing industry continued to be a key driver in Maluku, Papua, and Sulawesi, while Bali and Nusa Tenggara relied on tourism as their primary economic driver.
Looking ahead, the Indonesian government remains optimistic about sustaining economic growth in 2025 despite global uncertainties. As Indonesia navigates the evolving economic landscape, its ability to adapt and implement strategic measures will be crucial in achieving long-term growth and development.
(Raidi/Agung)
