Annisa Febiola, Jakarta – Minister of Investment Bahlil Lahadalia said Indonesia's economic growth in 2023 was one of the best in the world, supported by a strong investment rate.
Indonesia's economic growth was recorded at 5.31 percent year-on-year (y-o-y) in 2022, and down to 5.05 percent in 2023. The economic growth for the first quarter of 2024 is 5.11 percent y-o-y. "The economic growth in 2023 was above 5 percent with an inflation rate under 3 percent. It was one of the best economic growth in the world," he said on Thursday, July 11, 2024.
Bahlil said the world was not doing well, reflecting on the trade war between the US and China five years back. "While the trade war was ongoing, the COVID-19 pandemic hit almost all countries. It was a health issue but affected political, economic, and social issues," he said.
While countries are starting to recover from the pandemic, however, the war between Russia and Ukraine broke out. "And while that was unresolved, the tension in Gaza between Palestine and Israel escalated," the minister remarked.
Bahlil said not a single economist from any campus could predict what global economic conditions would be like in the future. Sustaining economic growth and avoiding recession depended on the expertise of each country's head of state, he added.
In 2023, only three countries had the strongest economic growth; India, China, and Indonesia. "The rest recorded growth under 5 percent," he said. Bahlil also said the investment realization in 2023 surpassed the Rp1,400 trillion target set by President Joko Widodo.
Last year, Indonesia noted Rp1,418.9 trillion in investment with with foreign investment of Rp743.9 trillion or 52.4 percent and domestic investment amounting to Rp674.9 trillion.
"In the manufacturing sector, Indonesia was the best in Southeast Asia in attracting foreign investment,"