Indonesia's Q2 Economic Momentum Remains Strong: Deputy Minister

Indonesia's economy maintained its strong growth momentum in the second quarter, according to the Deputy Minister for National Development Planning. He expressed confidence that this momentum would continue throughout the year. The primary drivers of this growth remain domestic consumption and investment. The recovery in people's purchasing power and government initiatives to promote infrastructure and private investment are stimulating economic activity. In particular, the surge in consumption during the Eid al-Fitr (Lebaran) holiday period is believed to have positively impacted the second-quarter economic figures. Despite facing challenges such as global economic uncertainties and inflationary pressures, the Indonesian economy continues to grow steadily, supported by the strength of domestic demand. The government plans to continue focusing on improving the investment climate and enhancing export competitiveness to ensure sustainable economic development. Regarding regional disparities, economic activity remains vibrant in urban areas, particularly on Java Island, while addressing economic inequality in rural areas continues to be a significant challenge. Furthermore, the impact of religious holidays on consumption is substantial, creating economic fluctuations throughout the year.