Indonesia’s Economy Rises by 5.01% in Q1

The largest economy in the ASEAN bloc, Indonesia, saw 5.01 percent growth in the first quarter of 2022 compared to the same period of 2021, Statistics Indonesia said on 9 May. 

The growth in the first quarter follows a 5.02-percent increase in gross domestic product (GDP) for the fourth quarter of 2021, and growth of 3.51 percent in the third quarter of 2021, the statistics office said.

Higher commodity prices and the easing of COVID restrictions helped Indonesia’s economy stay on the growth trajectory in the first three months of this year.

The highest growth was recorded in the transportation and storage sector, where production jumped by 15.79 percent, the Indonesian statistics office said. Growth in manufacturing stood at 5.07 percent, while the mining and quarrying sector posted a 3.82-percent increase.

For the full-year 2022, Indonesia’s economy is set to grow by 5.0 percent, the Asian Development Bank (ADB) said in a report in early April. In 2023, the largest Southeast Asian economy is expected to growth by 5.2 percent as domestic demand continues to recover, ADB said in its Asian Development Outlook (ADO) 2022.

“The Indonesian economy briskly rebounded from the downturn in the third quarter and ended 2021 with output higher than in pre-pandemic 2019. Growth was broad-based and should strengthen in 2022 as economic activity continues to normalize,” ADB Country Director for Indonesia Jiro Tominaga said in a statement.

“Private consumption and investment entered 2022 with a strong momentum, and the third COVID-19 wave should have minimal impact on growth. The Russian invasion of Ukraine, however, if prolonged, could significantly affect inflation and the fiscal balance,” Tominaga added.