As we delve into this Indonesian economic update in Q1 2024, we have observed mixed sentiments on both the global economy and Indonesia’s economy.
Given the anticipated economic instability, geopolitical tensions, and political transitions in several economies, global uncertainty is projected to persist in 2024. The ongoing conflict in the Middle East continues to raise concerns regarding potential disruptions to oil prices due to supply chain disturbances.
Adding to the complexity, the upcoming US presidential election will potentially increase uncertainty on the global stage, introducing an element of unpredictability that could potentially reshape geopolitical dynamics and affect economic policies worldwide. In this context, we examine how these global events may influence Indonesia's economic landscape in the coming months.
Domestically, the Indonesian economy grew by 5.05% year on year (“YoY”) in Q1 2024, amidst the weakening global economy. This performance, albeit slightly below the previous year's 5.31%, is noteworthy in the context of prevailing global economic challenges. Inflation experienced a significant deceleration, settling at 2.61%, a substantial decrease from 5.51% in the previous year, reflecting the efficacy of the country's monetary policies.
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