No.25/28/DKom
The latest data published by BPS-Statistics Indonesia indicates solid economic growth persisting in Indonesia. In the fourth quarter of 2022, strong national economic growth was recorded at 5.01% (yoy) against a backdrop of global economic moderation. Overall, in 2022, therefore, domestic economic growth in Indonesia was recorded at 5.31% (yoy), improving significantly from 3.70% (yoy) in 2021. Looking ahead, robust economic growth in 2023 is projected in the 4.5-5.3% range on the back of increasing domestic demand in the form of household consumption and investment. The latest projection is in line with increasing public mobility after the Government fully repealed community activity restrictions (PPKM), a promising business outlook, increasing foreign direct investment (FDI) inflows, as well as the ongoing completion of national strategic projects (PSN).
In terms of spending, solid economic growth was supported in the reporting period by nearly all GDP components. Household consumption grew 4.48% (yoy) in response to greater community mobility, which included celebrating the Christmas National Religious Holiday (HBKN) and New Year festive period, underpinned by ongoing social assistance program (bansos) disbursements. Export growth remained strong at 14.93% (yoy), driven by persistent demand in Indonesia's major trading partners. Non-building investment growth also remained high in line with export performance despite investment growth overall moderating slightly to 3.33% (yoy) due to low building investment. Meanwhile, government consumption contracted 4.77% (yoy) in the reporting period, which was primarily impacted by lower procurement for Covid-19 handling and the national economic recovery as the pandemic continues to fade.
Solid economic growth was also reflected regionally and by positive growth recorded across all economic sectors in the fourth quarter of 2022, led by the Manufacturing Industry, Wholesale and Retail Trade as well as Information and Communication. Meanwhile, Transportation and Logistics as well as Accommodation and Food Service Activities also recorded strong growth on increasing community mobility and a surge of arrivals by international and domestic travellers. Spatially, strong economic growth in the fourth quarter of 2022 was recorded in all regions of the Indonesian archipelago, notwithstanding some regional moderation. The strongest growth was recorded in the Sulawesi-Maluku-Papua (Sulampua) region, followed by Bali-Nusa Tenggara (Balinusra), Kalimantan, Sumatra and Java.
Jakarta, 6th February 2023
Communication Department
Erwin Haryono
Executive Director
Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id
