Three Bright Signs for Indonesia’s Economy

By the end of 2024, Indonesia’s economy is facing challenges that demand close attention.

Key issues include rising unemployment and a shrinking middle class. The manufacturing sector, once the backbone of the economy, is struggling due to increased competition from imports and weakened domestic demand.

Positive signals for the economy:

1️⃣ Growth in the tourism industry

The number of foreign tourists reached 10.37 million in the first nine months of 2024, a 20.28% increase compared to the same period last year.

This growth was made possible by improvements in aviation infrastructure and the simplification of visa procedures.

The government aims to attract 14.3 million tourists by the end of the year.

2️⃣ Increase in foreign direct investment (FDI)

In the third quarter of 2024, FDI reached a record 232.65 trillion rupiah, up 18.55% from the previous year.

Key investment sectors include mining, metallurgy, transportation, and telecommunications. This trend highlights the importance of resource processing and job creation.

3️⃣ Inflation control

In October 2024, annual inflation stood at 1.71%, despite rising prices for certain goods like coffee.

The government continues to implement measures to support household purchasing power, including financial assistance programs and support for small businesses.

These positive signals underscore Indonesia’s potential to overcome economic challenges. However, sustained growth requires coordinated efforts to create a business-friendly environment and enhance the country’s global competitiveness.

Sources: Id.investing.com