Unraveling Indonesia’s Prospects in 2024

As 2024 unfolds, Indonesia’s economic resilience remains firm amid global economic and geopolitical uncertainties. This year represents a turning point for Indonesia, as it marks the end of President Joko Widodo’s two-term tenure. While the change in leadership may prompt a “wait-and-see” approach among some investors, Indonesia is set to attract as much, potentially even more, foreign investment into the country.

To help foreign investors in better understanding Indonesia’s investment climate for 2024, Grant Thornton Indonesia presents this Unraveling Indonesia’s Prospects in 2024 report. Not only it provides the outlook from a macro perspective, but this report also offers an overview of Indonesia’s potential from a sectoral as well as a provincial perspective. Indeed, the government’s macro policies have an impact on how different provinces have performed in the economy. This report identifies provinces that have not only weathered the storm but also surpassed pre- Covid19 growth projections. Five provinces are primed to remain in the limelight for 2024: (1) North Maluku, (2) Central Sulawesi, (3) East Kalimantan, (4) West Java, and (5) Riau. We delved into both their current strengths and their promising potential for further economic growth.

In exploring these provinces, the report uncovers their current strengths and potential for further economic growth. North Maluku, situated in the eastern archipelago, stands out for its flourishing nickel industry, positioning itself as a key player

in the global market. Central Sulawesi has strategically sustainable agribusiness practices, fostering resilience and growth. Meanwhile, East Kalimantan, takes center stage with the groundbreaking National Capital City (IKN) project, is not only a hub for infrastructure development but also a nucleus for economic expansion. West Java’s manufacturing prowess continues to attract investors, contributing significantly to the province’s robust economic performance. Riau, with its focus on sustainable agribusiness practices, demonstrates a commitment to environmental and economic balance.

With its unique economic landscape, each province exemplifies the diverse investment opportunities available in Indonesia. Positioned as focal points for both domestic and foreign investors seeking sustainable growth in 2024, these regions are at the forefront of Indonesia’s dynamic economic narrative.

An exhaustive consideration and extensive number crunching goes into the making of this report.We would like to express our thanks to sources from the following institutions who have provided inputs in the process of making this report: Fiscal Policy Agency of the Ministry of Finance, Bank Central Asia (BCA), Bank DBS, and PT. Hutama Karya (Persero). Their support and insight have added another depth in our effort to map Indonesia’s economic situation comprehensively. We hope that this report will help in the decision- making process for investors interested in Indonesia.