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to the latest data published by BPS-Statistics Indonesia, the national economic
recovery currently underway in Indonesia remains intact given increasing
community mobility and amidst escalating geopolitical tensions between Russia
and Ukraine. Domestic economic growth
was solid and stable in the first quarter of 2022 at 5.01% (yoy) compared with
5.02% (yoy) in the previous quarter.
Positive economic performance in Indonesia has been fuelled by growing
domestic demand and maintained export performance. Furthermore, the national economic gains have
been replicated in most sectors and all regions. Moving forward, the Indonesian economy is
expected to gain momentum, with Bank Indonesia projecting growth at 4.5-5.3% in
2022, supported by a faster vaccination rollout, broad reopening of economic
sectors as well as policy stimuli instituted by Bank Indonesia, the Government
and other relevant authorities.
terms of spending, the economic recovery in the first quarter of 2022 was
driven primarily by household consumption, which accelerated significantly to
4.34% (yoy) from 3.55% (yoy) in the previous period. Such developments were explained by
increasing community mobility in line with looser mobility restrictions in the
first quarter of 2022 and a faster vaccination rollout. Investment grew 4.09% (yoy) in the reporting
period, mainly supported by non-building investment, yet growth of building
investment was also sustained. On the
other hand, government consumption contracted 7.74% (yoy) in line with
improving Covid-19 pandemic conditions that reduced procurement and social
assistance disbursements, particularly for Covid-19 containment and mitigation
measures. Exports continued to perform
well, expanding 16.22% (yoy) on the back of solid demand in Indonesia's major
trading partners and the limited impact of geopolitical tensions between Russia
and Ukraine. Imports in the first
quarter of 2022 grew 15.03% (yoy) in response to strong export performance and
increasing domestic demand.
all economic sectors recorded positive growth in the first quarter of 2022,
particularly the Manufacturing Industry, Retail and Wholesale Trade as well as
Transportation and Storage, given greater community mobility in all
regions. Spatially, all regions of the
Indonesian archipelago recorded positive economic growth in the reporting
period, led by Sulawesi-Maluku-Papua (Sulampua), followed by Java, Sumatra,
Bali-Nusa Tenggara (Balinusra) and Kalimantan.
Jakarta, 9th May
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