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GDP growth drops below 5% in Prabowo’s first quarter
Economic growth in Prabowo Subianto’s first full quarter as president has touched the slowest pace since the coronavirus pandemic as the Ramadan boost failed to significantly jack up consumer spending and investors fretted about global uncertainty while government spending contracted.
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A man and a boy walk across a makeshift bridge on Nov. 26, 2019, in Jakarta. (AFP/Bay Ismoyo)
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conomic growth in Prabowo Subianto’s first-full quarter as president has touched the slowest pace since the coronavirus pandemic as the Ramadan boost failed to significantly jack up consumer spending and investors fretted about global uncertainty while government spending contracted.
Statistics Indonesia (BPS) revealed in a press conference on Monday that the country’s gross domestic product (GDP) from January through March was up 4.87 percent year-on-year (yoy), marking a slowdown from GDP growth of 5.02 percent yoy in the preceding quarter.
The Prabowo administration has a full-year GDP growth target of 5.2 percent for 2025, and the President hopes to achieve a rate of 8 percent by the end of his term.
Commenting on the BPS report, Coordinating Economic Minister Airlangga Hartarto told reporters at his Jakarta office on Monday to wait for the GDP data for the second quarter, when state budget spending “has started to roll, so the growth momentum can be maintained.”
Budget spending was constrained in the first quarter as the government conducted a massive reallocation to redirect funds to the President’s flagship free nutritious meal program.
The data presented by BPS head Amalia Adininggar Widyasanti on Monday showed that government spending contracted 1.38 percent yoy in the first quarter, a far cry from its 19.9 percent yoy rise in the same quarter of 2024.
She explained that the drop was attributable to last year’s spending for the general election, which took place in February.
