These are the Main Drivers of Indonesian Economic Growth in Q3 2024

The Central Bureau of Statistics (BPS) reported that Indonesia's Gross Domestic Product (GDP) at current prices (ADHB) reached Rp5,638.9 trillion in the third quarter of 2024.

At constant prices (ADHK), the value was equivalent to Rp3,227.6 trillion, growing by 4.95% year-on-year (yoy) compared to the third quarter of the previous year.

Household consumption remains the main driver of Indonesia's GDP in terms of expenditure.

Household consumption at current prices in the third quarter of 2024 reached Rp2,993.2 trillion, or 53.08% of the national GDP at current prices.

"This component grew by 4.91% (yoy), indicating that the level of public consumption remains maintained," said the Acting Head of BPS, Amalia A. Widyasanti, in an online press conference on Tuesday (5/11/2024).

Compared to the second quarter of 2024, household consumption decreased by 0.48% (quarter-to-quarter/qtq).

Amalia explained that this decrease was driven by seasonality, as the previous quarter included the momentum of Ramadan, Eid al-Fitr, and a long weekend holiday.

Next, the gross fixed capital formation (GFCF) component contributed Rp1,677.5 trillion, equivalent to 29.75% of GDP.

Then, the contribution of exports of goods and services amounted to Rp1,270.4 trillion (22.53%); government consumption Rp406.5 trillion (7.21%); and changes in inventories Rp216.1 trillion (3.83%).

The statistical discrepancy component (difference between GDP by industry and GDP by expenditure) was valued at Rp173 trillion (3.07%), and consumption of non-profit institutions serving households (LNIS) at Rp73 trillion (1.29%).

"The LNIS component experienced growth of 11.69% (yoy), driven by increased activity in preparation for the regional elections and the 21st PON," said Amalia.

The reduction from imports of goods and services amounted to Rp1,170.9 trillion or 20.76% of the total national GDP at current prices.