TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Prabowo to boost household spending, Thomas Djiwandono says
Deputy Finance Minister Thomas “Tommy” Djiwandono stressed the importance of private consumption, which accounts for more than half of the country’s GDP, as a crucial driver of economic growth.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Defense Minister and president-elect Prabowo Subianto (center) attends a meeting with House of Representatives Commission I, which oversees defense and foreign affairs, at the Senayan legislative complex in Jakarta on Sept. 25. (Antara/Dhemas Reviyanto)
P
rabowo Subianto will make it a top priority to boost household spending and improve the livelihoods of people struggling to gain a solid financial footing when he assumes office, according to Deputy Finance Minister Thomas “Tommy” Djiwandono, a close ally of the president-elect.
Tommy, who is also Prabowo’s nephew, stressed the importance of private consumption, which accounts for more than half of Indonesia’s gross domestic product (GDP), as a critical driver of economic growth.
“We have to focus on household consumption patterns [to improve livelihoods],” Tommy told reporters at a press briefing on Sept. 25. “We also have to find new growth engines, create sustainable jobs and build a stronger economy.
“If we pull this off, it will significantly bolster our country’s economic resilience,” he continued, noting that, without diversifying beyond existing national industries, such as the processing of mineral resources, economic progress would be limited.
Read also: Govt ‘could’ push spending to boost slowing GDP growth
Economic growth slowed to 5.05 percent year-on-year (yoy) in the second quarter of 2024, down from 5.11 percent in the first quarter, according to Statistics Indonesia (BPS) data.
While still the backbone of the country's economy, household spending has grown at a slower rate than GDP as a whole so far this year, rising just 4.93 percent yoy in the second quarter and 4.91 percent yoy in the first, and therefore dragging down overall economic growth.
