Indonesia Ranks as the World's 8th Largest Economy, Airlangga Highlights Achievements

Jakarta – Indonesia has secured its position as the world's 8th largest economy, according to Purchasing Power Parity (PPP)-adjusted Gross Domestic Product (GDP) in 2024, as revealed by Coordinating Minister for Economic Affairs, Airlangga Hartarto.

Citing data from the International Monetary Fund (IMF), Indonesia’s GDP has reached USD 4.7 trillion, placing it among the world's leading economies.

"Indonesia is now ranked eighth globally. This is one of the reasons why we are progressing towards OECD accession," Airlangga stated during the Indonesia Economic Summit by IBC at Shangri-La Hotel Jakarta on Tuesday (Feb 18, 2025).

Low Inflation, Economic Stability Maintained

Airlangga also highlighted Indonesia's success in controlling inflation, which stood at 1.57% last year and has now dropped to 0.76%.

This achievement was largely driven by the 50% electricity tariff discount for households consuming less than 2,200 VA over the past two months, easing financial burdens on consumers.

With controlled inflation, Indonesia remains one of the countries with the lowest inflation rates globally while also having one of the lowest recession risks.

"Indonesia plays a crucial role in the Southern Hemisphere. Its inclusion in the OECD will enhance the organization’s inclusivity," Airlangga noted.

Strong Economic Growth, Positive Trade Balance

Despite global economic uncertainties, Indonesia continues to demonstrate resilience, with economic growth exceeding 5% and stable inflation levels. Other key economic indicators also reflect a strong performance:

• Poverty rate: 8.57%
• Unemployment rate: 4.91%
• Purchasing Managers Index (PMI): 51.9
• Consumer Confidence Index (CCI): 127.2
• Real Sales Index: Above zero

"Our trade balance has remained positive for 57 consecutive months, with a surplus of USD 31 billion, driven by strong export growth," he added.

Key export commodities have also seen significant growth:

• Nickel: up 17.3%
• Precious metals: increased 18.3%
• Footwear and apparel: grew 10%

Although some industries continue to face challenges, Airlangga emphasized that global demand for textiles and downstream industries remains strong, signaling promising prospects for Indonesia’s manufacturing sector.

Temukan berita dan artikel lainnya di Google News