Indonesia’s economy exceeded expectations in the first quarter, with a GDP growth of 5.11 percent year-on-year. This growth was largely driven by increased domestic consumption during the Islamic festive season and the presidential election, according to Finance Minister Sri Mulyani.
Despite global uncertainty, Indonesia’s economy showed resilience, as evidenced by a decrease in the unemployment rate. Household spending was a key driver of economic growth, fueled by low inflation, increased economic activity during Ramadan, and bonuses for Idul Fitri and civil servant pay raises. The 5.11 percent growth figure was higher than the previous quarter’s 5.04 percent and exceeded forecasts from Moody’s Analytics and a consensus forecast from Reuters economists.
This strong economic performance demonstrates Indonesia’s ability to navigate global challenges and sustain growth. To stay informed on Indonesia’s rapidly evolving business landscape, subscribe to “Prospects” for exclusive interviews and in-depth coverage of the region’s most pressing business issues. Stay ahead of the curve with the latest insights and updates delivered straight to your inbox.
