Indonesia's Economic Growth Reaches 5.17% in Q2 2023

According to a report by the Central Statistics Agency (BPS), Indonesia's economy grew by 5.17% year-on-year (yoy) in the second quarter of 2023, exceeding the 5.04% growth achieved in the first quarter of 2023.

BPS Deputy for Statistics Balance and Analysis, Moh. Edy Mahmud, stated that this economic growth figure is derived from a Gross Domestic Product (GDP) at constant market prices (ADHK) of Rp3,075.7 trillion and a GDP at current market prices (ADHB) of Rp5,226.7 trillion for the second quarter of 2023.

"Amidst a projected slowdown in the global economy and a declining trend in leading export commodities, Indonesia's economic growth remains solid at 5.17% year-on-year," Edy said in an online press conference on the BPS YouTube channel on Monday (7/8/2023).

Edy also mentioned that Indonesia's economy has consistently grown above 5% (yoy) for seven consecutive quarters. "This indicates that our economic growth is becoming increasingly stable," he said.

On the other hand, on a quarterly basis, Indonesia's economy grew by 3.86% in the second quarter of 2023 compared to the previous quarter (quarter-on-quarter/qoq).

This is better than the first quarter of 2023, which saw a decline of 0.91% (qoq). "This is in line with patterns in previous years, where second-quarter growth is higher than first-quarter growth," Edy explained.

Based on expenditure sources, Indonesia's economy is still supported by household consumption. In the second quarter of 2023, household consumption contributed 53.31% to Indonesia's economy, with a growth rate of 5.23% (yoy).

Next, Gross Fixed Capital Formation (PMTB) or investment contributed 27.9%, with growth of 4.63% (yoy). Meanwhile, Indonesian exports decreased by 2.75% (yoy), and imports decreased by 3.08% (yoy).

Government consumption increased by 10.62% (yoy). Finally, consumption by Non-Profit Institutions Serving Households (LNPRT), such as social organizations, grew by 8.62% (yoy).