According to the latest data published by BPS-Statistics Indonesia, the national economy in Indonesia posted strong growth in the second quarter of 2022 despite the risks posed by global economic moderation and increasing inflationary pressures.  Economic growth in the second quarter of 2022 accelerated significantly to 5.44% (yoy) from 5.01% (yoy) in the previous period.  Faster economic growth was supported by growing domestic demand, particularly household consumption, and persistently solid export performance.  National economic improvements were also reflected in higher growth among most economic sectors and in all regions.  Moving forward, the economic gains are expected to persist on increasing mobility, sources of finance and corporate activity.  Notwithstanding, the impact of global economic moderation on export performance, coupled with potentially restrained household consumption in response to higher inflation, demand vigilance. 

In terms of spending, economic growth in the second quarter of 2022 was driven by nearly all components.  Household consumption soared to 5.51% (yoy) from 4.34% (yoy) in the previous period, boosted by greater public mobility as the Government relaxed mobility restrictions together with the national religious holiday (HBKN).  In contrast, investment moderated to 3.07% (yoy), primarily due to building investment amid solid non-building investment performance.  Meanwhile, government consumption contracted 5.24% (yoy), particularly due to lower procurement associated with Covid-19 handling and the national economic recovery as pandemic conditions improved.  Export growth increased to 19.74% (yoy) on the back of persistently solid demand from Indonesia's key trading partners.  Furthermore, import growth was also high at 12.34% (yoy) in line with growing domestic demand and improving export performance. 

Economic improvements persisted in nearly all economic sectors in the second quarter of 2022, primarily driven by the Manufacturing Industry, Transportation and Storage as well as Wholesale and Retail Trade.  Meanwhile, Accommodation and Food Service Activities posted strong growth after travel restrictions were lifted and activity increased during the national religious holiday (HBKN).  Spatially, all regions of the Indonesian archipelago recorded stronger economic growth in the reporting period, led by Sulawesi-Maluku-Papua (Sulampua), followed by Java, Sumatra, Kalimantan and Bali-Nusa Tenggara (Balinusra).

Jakarta, 5^th August 2022

Head of Communication Department

Erwin Haryono

Executive Director