BPS Records Indonesia's Economic Growth in 2023 at 5.05%

JAKARTA. Statistics Indonesia (BPS) recorded Indonesia's economic growth based on Gross Domestic Product (GDP) cumulatively, at 5.05% on an annual basis or year on year. This growth rate is lower or indicates a slowdown from the 2022 growth rate of 5.31%.

Quoting Kontan.co.id, BPS revealed that this slowdown occurred due to the global economic trend which also experienced a slowdown throughout 2023. Another factor was the long drought which affected the performance of the agricultural sector.

The GDP value based on current prices in Indonesia was IDR 20,892.4 trillion with a GDP per capita of IDR 75 million or equivalent to USD 4,919.7.

Equal Growth in All Business Sectors

When viewed by business sectors, BPS recorded that growth also occurred in all business sectors. The highest growth was seen in Transportation and Warehousing at 13.96 percent; followed by Other Services at 10.52 percent; and Provision of Accommodation and Food and Beverage Services at 10.01 percent.

Meanwhile, the Manufacturing Industry, which has a dominant role, grew by 4.64 percent. For Agriculture, Forestry, and Fisheries and Wholesale and Retail Trade; Car and Motorcycle Repair grew by 1.30 percent and 4.85 percent respectively.

Furthermore, based on expenditure, growth also occurred in all expenditure components, with the highest component of The Non-Profit Institutions Serving Households (LNPRT), which grew at 9.8%

Household consumption expenditure grew by 4.82%. Then, the component of Gross Domestic Fixed Capital Formation (PMTB) or investment grew by 4.40%. Government consumption expenditure grew by 2.95%. Meanwhile, the components of exports and imports of goods and services grew by 1.32% and -1.65%, respectively.

Slowing Down in Election Year

Meanwhile, one of the global financial institutions, the World Bank, predicts that Indonesia's economic growth will slow down again in 2024.

The World Bank predicts that Indonesia's economic growth in 2024 will only be 4.9% or not reach the 5% growth level. This is due to the factor that commodity prices are starting to fade, affecting the performance of exports and imports.

In addition, political contestation activities or general elections (elections) are also seen to affect the slowdown in investment growth in the country. This phenomenon does not only occur in Indonesia but also in every country that holds elections. (ASP/KEN)