With a 5.03% growth over the whole year 2024 compared to 5.05% over the entire year 2023, Indonesia is showing impressive vitality and regularity.
These figures are disappointing for the new President, Prabowo Subianto, who has set himself a growth target of 8% by the end of his term in 2029. Nevertheless, Indonesia remains one of the most dynamic emerging economies. This is all the more impressive as inflationary pressures remain particularly low. In January, annual inflation was below 0.8%, a level that would make the West envious.
Indonesia is, therefore, on a sound footing, and growth should remain strong, supported by continued private demand and investment.
Contained inflation should also allow the central bank to remain on a path of monetary policy relaxation. A cheaper loan will only strengthen the two main engines of the economy.
With strong domestic demand and good fundamentals, the Indonesian economy is well-positioned to continue performing well.
We continue to invest in this market - one of the most promising emerging markets - through our portfolio.
