Even though the Global Economy is Slowing Down, Indonesia’s Economic Growth Remains Strong
Indonesia’s economic growth remains strong amidst a global economic slowdown. In a press release from Bank Indonesia (BI), as referring to the Central Bureau of Statistics (BPS) data, Indonesia’s economic growth in the first quarter of 2023 was recorded at 5.03% (yoy), a slight increase compared to growth in the previous quarter of 5.01% (yoy). ).
Looking ahead, economic growth in 2023 is expected to remain strong at the upper limit of the 4.5-5.3% range, driven by improving domestic demand and continued positive export performance.
Economic growth that remained strong was supported by all components of GDP. Exports continued to grow high at 11.68% (yoy), supported by strong demand from major trading partners.
Household consumption improved with growth of 4.54% (yoy), in line with increased mobility and increased purchasing power as well as reduced inflation. Government consumption grew positively by 3.99% (yoy), mainly driven by goods and personnel spending.
Non-construction investment growth remained good in line with export performance, although overall investment growth was still stuck at 2.11% (yoy) due to limited construction investment.
Indonesia’s economic growth which remains strong is also reflected in terms of Business Field and spatial. In terms of Business Field (LU), all LU in the first quarter of 2023 recorded positive growth, mainly supported by the Processing Industry, Wholesale and Retail Trade, and Mining and Quarrying.