Indonesia's Economy Grows 7.07% in Q2 2021, Exiting Recession

Indonesia has finally emerged from recession. The Central Bureau of Statistics (BPS) recorded that Indonesia's economic growth reached 7.07% year-on-year (yoy) in the second quarter of 2021.

Indonesia's economic growth on a quarterly basis (q-to-q) reached 3.31% in April-June 2021. Cumulatively, Indonesia's economic growth was 3.1% (c-to-c) in the first half of 2021.

Based on its size, the Gross Domestic Product (GDP) at current prices reached Rp 4,175.8 trillion in the second quarter of 2021. Meanwhile, the GDP at constant prices was recorded at Rp 2,772.8 trillion.

The positive annual economic growth is the first since the second quarter of 2020. Previously, Indonesia experienced continuous economic contraction for four consecutive quarters.

The positive economic growth in the second quarter of 2021 was driven, in part, by increased public mobility. This boosted household consumption growth to 5.93%.

Consumption of non-profit institutions serving households (LNPRT) also grew by 4.12%. Government consumption increased by 8.06%.

Investment, represented by gross fixed capital formation (PMTB), increased by 8.06%. In addition, Indonesian exports increased by 31.78% and imports grew by 31.22%.

By industry sector, the transportation and warehousing sector recorded the highest growth during April-June 2021, at 25.1%. This was followed by the accommodation, food, and beverage sector, which grew by 21.58%.

Other service sectors also grew by 11.97% in the second quarter of 2021. The health services sector experienced an increase of 11.62% during the same period.