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MACROECONOMICS-JAKARTA. JP Morgan Indonesia's Executive Director Henry Wibowo predicts that Indonesia's domestic consumption in 2024 will remain strong.
Henry said, even though the global economy shows a slowing trend, domestic consumption will be the backbone of Indonesia's economic growth this year.
Especially considering the composition of Indonesia's Gross Domestic Product (GDP), more than 50% is contributed by household consumption.
Henry predicts, Indonesia's per capita GDP will exceed US$ 5,000 this year. This figure is an increase compared to Indonesia's per capita GDP in 2023 which reached US$ 4,919.7.
"This is a significant milestone figure, because this figure is the same as in China in 2011," said Henry at the Economic Outlook 2024 event, Wednesday (7/2).
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Henry also predicts that Indonesia's economic growth in 2024 will still be in the range of 4.5% to 5%.
Even though the commodity supercycle is almost over, Henry sees that domestic consumption will be the backbone of economic growth this year. Especially this year there is a simultaneous general election.
"We will have three election events this year. Round one, there might be a second round, then with the regional election also in this fourth quarter. So domestic spending should tend to be better compared to the previous year," added Henry.
