With this growth rates and the sustainability of structural improvements, Indonesia’s economic growth rate is expected to reach 5.1% in 2023.
Heaptalk, Jakarta — Indonesia’s Central Bureau of Statistics (BPS) recorded that Indonesia’s economy in Q2 grew by 5.17% YoY, compared to a first quarter (Q1) of 5.03% this year.
Based on the Deputy for Accounts and Statistics at BPS, Edy Mahmud, Indonesia’s Gross Domestic Product (GDP) at current prices had touched US$343 million, equal to Rp5,226 trillion in Q2 2023. Meanwhile, Indonesia’s GDP at constant prices has reached US$201 million (around Rp3.075 trillion).
Furthermore, This national achievement was higher than the majority of countries and regions, including Vietnam (4.1%), European Union (0.6%), the United States (2.6%), and South Korea (0.9%) YoY in the same period.
From the expenditure side, the strong national economic growth was supported by public consumption, which grew by 5.23% YoY. People’s purchasing power continues to be maintained as the inflation rate declines. Besides, the State Budget (APBN) role has also significantly supported Q2 2023 growth performance. Government consumption, including personnel and goods spending, grew strongly by 10.62%, compared to Q1 of 3.45%.
Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, admitted, “The national economic improvement has continued to climb above 5% for seven consecutive quarters. The output exceeded market expectations even with a high increase in the previous year’s similar period. This matter indicates the resilience of national economic activity amidst the global economic slowdown,”
Exports also grew by 2.75%, while imports elevated by 3.08% amidst a slowdown in world trade. However, exports of superior national products are still increasing positively. In terms of volume, coal exports increased by 5.1%, refined palm oil reached 56.4%, and steel reached 18.0% YoY in Q2 2023.
“Indonesia’s investment value has also improved, aligned with structural reforms continuously being rolled out to create a more attractive investment climate. This positive investment growth was also driven by growth in building capital goods, equipment, and machinery, which meant that production activity continued to strengthen,” added Febrio.
According to him, the resilience of the national economic expansion trend maintained until Q2 2023 is a critical factor for the economic enhancement trend. In addition, the decrease in the unemployment rate to 5.45% as of February 2023 and a diminishment in the percentage of poor people by 9.36% in March 2023 also contributed to the national economic quality.
Indonesia’s government would continue anticipating a global economic slowdown, impacting the country’s international trade performance. With the achievement of growth rates and the sustainability of structural improvements, the government predicts the national economic growth rate is expected to reach 5.1% in 2023.
“The government will continue to monitor the risks of the current world economic slowdown, particularly the impact on national exports and imports. Also, encouragement for the sustainability of the downstream stage will be carried out to boost national export performance,” concluded Febrio.
