Heaptalk, Jakarta — Indonesia’s Central Bureau of Statistics (BPS) reported that the archipelago’s economy in the fourth quarter of 2023 attained 5.04% YoY. This economic realization is lower than the previous accomplishment, which was 5.31% in 2022. Nevertheless, Indonesia’s overall economy increased to 5.05% YoY last year.
According to the country’s Gross Domestic Product (GDP), Indonesia’s economy, based on the stipulated prices, has attained Rp20,892 trillion. Furthermore, BPS also recorded that GDP per capita reached Rp74.96 million last year.
Responding to this outcome, Acting Head of Central Bureau Statistics (BPS), Amalia Adininggar Widyasanti, said, “Amid the global economy slowdown and reduction in prices of leading export commodities, the growth of Indonesia’s economy in the fourth quarter is usually relatively low compared to the previous quarter. However, the fourth quarter economy continued to grow solidly at 5.04% YoY,”
From the production perspective, BPS disclosed that the highest economic growth occurred in the Transportation and Warehousing Business Field at 13.96% last year. On the other hand, government administration, defense, and Mandatory Social Security also grew by 19.81% in 2023.
Household consumption grew by 4.47% YoY, aligned with increased mobility, stable public purchasing power, and increased consumer confidence. Investment also rose by 5.02%, contributing by building investment aligning with continued infrastructure development and capital investment activity.
In 2023, Indonesia’s economy continued to increase spatially. Based on the provincial group, several of Indonesia’s islands that recorded the highest economic growth, including Maluku and Papua (6.94%), Sulawesi (6.37%), Kalimantan (5.43%), Sumatera (4.69%), Java (4.96%), and Bali-Nusa Tenggara (4.00%).
Welcoming a new year, Bank Indonesia (BI) estimated the national economy is expected to grow in the range of 4.7% – 5.5%, which will be boosted by the country’s primary domestic demand and continued consumption growth, including the positive impact of this year’s elections, increased investment, specifically buildings investment aligns with the continued development of National Strategic Projects (PSN), such as IKN.
Meanwhile, Exports grew by 1.64%, supported by buoyant demand from significant trading partners amidst falling prices of leading export commodities. Improvements in service exports and the increasing number of foreign tourists also contributed to this growth. Regarding this year’s estimation, BI observed that export performance still needs to be improved due to the impact of the current volatile global economy and declining commodity prices.
