Indonesia's Economy Grows 3.51%, Below Sri Mulyani's Expectations

The Central Statistics Agency (BPS) reported that Indonesia's economic growth was 3.51% year-on-year (yoy) in the third quarter of 2021. This growth is below Sri Mulyani's projection of 4.5%.

Furthermore, Indonesia's economy slowed from 7.07% (yoy) in the previous quarter. However, it was higher than the third quarter of 2020, which experienced a contraction of 3.49% (yoy).

BPS stated that the industrial, agricultural, trade, construction, and commerce sectors contributed to Indonesia's economic growth rate. These sectors contributed 66.42% of Indonesia's total GDP in the third quarter of 2021.

Meanwhile, from the expenditure side, 83.54% was contributed by household consumption and investment. BPS noted that all expenditure components experienced positive growth.

Household consumption grew by 1.03% (yoy). This figure slowed from 5.96% (yoy) in the previous quarter but was higher than -4.05% (yoy) in the third quarter of 2020.

The same happened with the investment component. This is reflected in the Gross Fixed Capital Formation (PMTB) of 3.74% (yoy). This is higher than -6.48% (yoy) in the third quarter of 2020 and slowed from 7.54% (yoy) in the second quarter of 2021.

Meanwhile, the growth rate of government consumption was 0.66% (yoy). This figure slowed from 8.03% (yoy) in the second quarter of 2021 and 9.76% (yoy) in the third quarter of 2020.

From the trade side, imports and exports experienced the highest growth among other components. Import growth was 30.11% (yoy), slowing from 31.72% (yoy) in the second quarter of 2021 and increasing from -23% (yoy) in the third quarter of 2020.

The growth of exports of goods and services was 29.16% (yoy). This figure slowed from 31.98% (yoy) in the second quarter of 2021 and increased from -11.66% (yoy) in the third quarter of 2020.