Indonesia's Economy Grew 5.44% in the Second Quarter of 2022

The Central Statistics Agency (BPS) reports that Indonesia's economy, measured by Gross Domestic Product (GDP) at current prices, reached Rp4.92 quadrillion in the second quarter of 2022.

Meanwhile, based on the 2010 constant price GDP, Indonesia's economy reached Rp2.93 quadrillion in the second quarter of 2022, growing by 3.72% compared to the previous quarter (quarter-on-quarter/qoq).

Compared to the second quarter of 2021, the domestic economy grew by 5.44% year-on-year (yoy). This figure surpasses the pre-pandemic growth rate of 2019, as shown in the graph.

According to BPS Head Margo Yuwono, amidst inflationary pressures and the threat of a global recession, this impressive economic growth indicates that the economic recovery trend continues and is strengthening.

BPS Head Margo Yuwono also explained that Indonesia's economic performance throughout the second quarter of 2022 was influenced by both domestic and global factors.

Globally, disruptions to the global supply chain have resulted in higher prices for Indonesia's leading commodities, providing a windfall for export performance.

Domestically, the easing of mobility restrictions and the Idul Fitri holiday boosted consumer spending and stimulated increased supply.

"Subsidy and social assistance policies, as well as interest rate control, have been quite effective in controlling domestic inflation, maintaining public purchasing power, and keeping the business climate conducive," said the BPS Head in an online press conference on Friday (5/8/2022).

In terms of production, the sectors contributing most to Indonesia's economic growth in the second quarter of 2022 were manufacturing, transportation and warehousing, and trade.