REPUBLIKA.CO.ID, JAKARTA — Bank Mandiri Chief Economist Andry Asmoro revealed that sectoral developments in the In2024 quarter showed several factors driving growth. He uttered. The 2024 election, the trend of community mobility is still high and commodity prices are relatively high.

“Government Administration, Defense, and Compulsory Social Security sectors registered the highest growth amid the implementation of the General Elections (general elections) that coincide in February 2024,” Andry said in the Mandiri Macro and Market Brief Thriving Through Transition 2024 online, Tuesday (14/5/2024).

He explained that the sector grew by 18.9 percent on an annual basis in the first quarter of 2024. The figure is higher than the average sectoral growth of 7.13 pesen on an annual basis.

“The accommodation and restaurant sector is still growing at 9.39 per cent and the same is the case in the mining sector which is growing 9.31 per cent,” Andry said.

Meanwhile, the processing sector, which is the sector with the largest proportion in the Indonesian economy, recorded growth of 4.13 percent on an annual basis in the first quarter of 2024. High-growth manufacturing industry sectors are those related to downstream programs and those oriented to domestic markets e.g. chemicals, pharmaceuticals, food and beverages).

Meanwhile, the export-oriented manufacturing sector is under pressure such as textile products and furniture. In general, he continued, commodity prices have corrected, but the formed price level is still favorable.

“The company's strategy in commodity sectors such as CPO, rubber, coal, and nickel is to make efficiencies so that profit margins do not fall and persist amid high price volatility,” Andry said.

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