REPUBLIKA.CO.ID, JAKARTA -- Central Bank of Indonesia (BI) Governor Perry Warjiyo said here on Wednesday that Indonesia's economic recovery has continued in 2024, supported by domestic demand.

He made the statement in Jakarta while announcing the results of the meeting of BI's board of governors for January 2024.

Warjiyo noted that Indonesia's economic growth in 2023 was projected to be around 4.5 to 5.3 percent, driven by consumption and investment, in line with the acceleration of government spending at the end of the year and the completion of several national strategic projects.

Meanwhile, in 2024, Indonesia's economic growth is projected to rise to around 4.7 to 5.5 percent, primarily bolstered by domestic demand, he said.

He explained that economic growth in 2024 will be supported by growth in consumption, including the positive impact of the general elections and an increase in investment, especially for buildings.

"(This is) in line with the continuity of the construction of national strategic projects, including the national capital city (Nusantara)," he added.

The BI governor further said that export performance is predicted to not yet be strong due to the impact of the global economic slowdown and a decline in the prices of commodities.

According to him, based on business fields, the prospects for the processing, wholesale and retail trade, information and communication, construction and transportation, and warehousing industries are predicted to continue to grow well.

He said that, spatially, good growth is predicted for all regions, especially Sulawesi, Maluku, and Papua, in line with the positive impact of mineral downstreaming, as well as Java on the back of domestic demand, which is still strong.

Warjiyo affirmed that going forward, BI will continue to bolster the synergy between the government's fiscal stimulus and BI's macroprudential stimulus to encourage economic growth, especially from the domestic demand side.

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