Coordinating MINISTER for Economic Affairs (Coordinating Minister for Economic Affairs), Airlangga Hartarto, said that the geopolitical situation in the world is currently still showing an unfavorable trend.
“The geopolitics of the Ukraine war are not over yet, while we see in the Middle East Hamas-Israel, plus the fighting between Iran and Israel,” said Airlangga in Jakarta on Saturday (11/5).
On the other hand, he continued, economic growth conditions in Europe are still low, coupled with the extreme right movement in Europe which is starting to rise.
“France will have an election soon, and Germany’s economy will not be doing well either, this is what we have to be aware of,” he explained.
From the manufacturing index sector, he continued, Indonesia is still at the expansion level amidst slowing global manufacturing activity.
“Indonesia’s manufacturing PMI is still above 52.9, meaning we are still better than China (51.4) and Malaysia (49.0),” said Airlangga.
Also read: Airlangga confirms that Indonesia’s economic fundamentals are strong enough to reduce the impact of potential conflict escalation in the Middle East region
Airlangga also stated that Indonesia’s economic growth in the first quarter of 2024 was at 5.11 percent and this figure was higher than the previous quarter, which was only 5.03 percent.
“5.11 percent is relatively the highest because first we have Eid, second we have elections (general elections). So no matter what, the elections increase domestic consumption,” he added.
Apart from that, the results of economic growth in terms of employment increased the population by 3.5 million people to 142.18 million people. Meanwhile, the number of unemployed decreased by almost 800 thousand people compared to 2023 to 7.2 million people and formal employment was 40.8 percent higher than in February 2023.
Meanwhile, by region, Java is still the highest contributor to economic growth with a figure of 57.70 percent. Meanwhile, economic growth for the islands of Kalimantan, Maluku and Papua is supported by mining and downstreaming, especially from smelters and others. (Z-6)
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