Indonesia Achieves Significant Poverty Reduction and Economic Growth in 2024
Jakarta, The Gulf Observer: Indonesia recorded a substantial improvement in poverty reduction, employment growth, and economic inequality in 2024, Finance Minister Sri Mulyani Indrawati announced during a press conference on Monday.
The national poverty rate dropped to 9.03% in 2024, down from 9.36% in 2023, while the extreme poverty rate fell from 1.12% to 0.83%. Inequality, as measured by the Gini ratio, improved from 0.388 in 2023 to 0.379 in 2024.
“There was a decline in poverty, Gini ratio, and unemployment rate. This reflects the collective effort and the state budget’s role in safeguarding the community and the economy,” Minister Indrawati stated.
Labor Market Improvements
The labor market saw notable progress, with unemployment dropping from 5.32% in 2023 to 4.91% in 2024. Additionally, 4.78 million new jobs were created, with 3.44 million formal positions, increasing the total formal workforce to 56.2 million.
Key sectors contributing to this growth include:
- Agriculture: Workforce expanded from 39.5 million in 2023 to 40.8 million in 2024.
- Trade: Employment rose from 26.6 million to 27.3 million.
- Manufacturing: Workers grew from 19.3 million to 20 million.
- Services: Employment increased from 22.7 million to 23.7 million.
Agricultural Sector Gains
The farmer’s exchange rate (NTP) climbed to 122.78 in 2024, surpassing the 105-108 target set by the House of Representatives (DPR). The increase was supported by fertilizer subsidies, expedited agricultural infrastructure development, food assistance programs, and food price stabilization measures.
Despite this progress, the fisherman’s exchange rate (NTN) fell short of its goal, standing at 102.35 against the expected 107-110.
Social Assistance Impact
Minister Indrawati emphasized the importance of social welfare initiatives, including the Family Hope Program (PKH), Smart Indonesia Card (KIP), Healthy Indonesia Card (KIS), and the Pre-Employment program, in reducing economic burdens and enhancing community welfare.
“These programs have played a vital role in improving conditions, as seen in the rise of the farmer’s exchange rate from 118.27 to 122.78,” she concluded.
Indonesia’s economic achievements in 2024 demonstrate the effectiveness of targeted policies and collaborative efforts in driving sustainable growth and improving the welfare of its citizens.
