Jakarta Residential 2H/2024

INDONESIAN ECONOMIC INDICATORS

Indonesia’s posted estimated economic growth of 5.2% in 2024, an increase of 0.1 basis points compared to the previous year driven by a rise in both domestic and foreign investment. This optimism was further reinforced by the seamless transition of leadership following the presidential election. The newly appointed cabinet restored confidence in the business environment, encouraging enterprises to resume activity after a period of cautious restraint during the election cycle.

Indonesia’s interest rate movements from 2016 to 2024 highlight its adaptive monetary policies amid shifting economic conditions. The government is expected to maintain the interest rate at the current 6% in anticipation of the upcoming increase in Value-Added Tax (VAT) to 12%. This policy aims to mitigate potential inflationary pressures while ensuring economic stability during the tax adjustment period.