Household Consumption Grew 5.39% in Q3 2022, Supported by Subsidies

Household consumption contributes the most to Indonesia's national Gross Domestic Product (GDP) from the expenditure side.

Indonesia's Central Bureau of Statistics (BPS) reported that household consumption reached Rp2.56 quadrillion in the third quarter of 2022. This contributed 50.38% to the national GDP.

Spending activity increased among the upper-middle class, particularly for tertiary needs. The purchasing power of the lower-income group was supported by social assistance and energy subsidies.

"The boost in household consumption is reflected in increased mobility," according to the official BPS release.

Based on the 2010 constant price GDP (ADHK), household consumption grew by 5.39% in the third quarter of 2022 compared to the third quarter of 2021 (year-on-year/y-on-y). This figure is lower than the previous quarter's growth of 5.51% (y-on-y).

Compared to the previous quarter, household consumption in the third quarter of 2022 experienced a contraction of 0.3% (quarter-on-quarter/q-to-q).

Cumulatively throughout the third quarter of 2022, household consumption grew by 5.08% compared to the same period the previous year (cumulative-on-cumulative/c-on-c).