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GDP growth beats expectations, buoyed by domestic spending
Indonesia’s economic growth once again beat market estimates as the country’s GDP increased by 5.17 percent year-on-year in the second quarter of 2023, despite a drop in exports.
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Residents carry bottles of cooking oil in March 2022 during a market operation conducted by the Trade Ministry at Trayeman Market in Tegal, Central Java. Each household was entitled to 1.2 liters of cooking oil at a price of Rp 14,000 (98 US cents) per liter. (Antara/Oky Lukmansyah)
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ndonesia’s economic growth once again beat market estimates, with GDP rising by 5.17 percent year-on-year (yoy) in the second quarter of 2023, thanks to strong domestic demand.
Forecasts published by Bank Mandiri and Bank Permata had projected annual GDP growth of 5.04 and 5.0 percent, respectively.
“Amid a global economic slowdown and a declining trend for key commodity exports, the Indonesian economy showed solid growth at 5.17 percent yoy,” Statistics Indonesia (BPS) official Edy Mahmud announced in a press briefing on Monday.
This reading marks the seventh consecutive quarter with economic growth above 5 percent.
In a separate briefing on Monday, Coordinating Economic Minister Airlangga Hartarto said Jakarta was still aiming for full-year GDP growth of 5.3 percent, marking the upper bound of the target range set in the state budget.
“Normally, we can still push economic growth in the third quarter, and one of the prerequisites to that is we genjot [speed up] government spending,” Airlangga said.
Growth occurred in all industries, with the transportation and storage sector seeing the fastest expansion at 15.28 percent yoy.
