indo01

Indonesia’s GDP rises 5.03% YoY in Q1 2023; manufacturing sector leads

  • May 10, 2023

Indonesia’s economy in the first quarter (Q1) of 2023 grew by 5.03 per cent year-on-year (YoY). The manufacturing sector, which had a dominant contribution, grew by 4.43 per cent, as per Statistics Indonesia.

The structure of Indonesia’s gross domestic product (GDP) in Q1 2023, on the production side at the current prices, did not show any significant changes. Indonesian economy was still dominated by manufacturing at 18.57 per cent, followed by wholesale and retail trade.

Overall exports showed the highest growth of 11.68 per cent. It was followed by the NPISHs Final Consumption Expenditure (NPISHs FCE) component by 6.17 per cent, Household Final Consumption Expenditure (HFCE) component by 4.54 per cent; General Government Final Consumption Expenditure (GGFCE) component by 3.99 per cent; and Gross Fixed Capital Formation (GFCF) component by 2.11 per cent. Imports of the Goods and Services component (as the reducing factor in GDP by expenditure) also grew by 2.77 per cent, according to data released by Statistics Indonesia.

The structure of Indonesian GDP by expenditure showed no significant changes. Covering more than half of the GDP, the HFCE component still dominated Indonesian economy by giving a 52.88 per cent share. Furthermore, the GFCF component was the second largest contributor with 29.11 per cent share, followed by Exports of Goods and Services with 22.71 per cent, GGFCE component with 5.32 per cent, NPISHs FCE component with 1.17 per cent, and Changes in Inventories with 2.40 per cent. Meanwhile, Imports of Goods and Services component, as the reducing factor in GDP, contributed to 19.56 per cent.

Indonesia’s economy contracted by 0.92 per cent in Q1 2023 compared to the previous quarter. The contraction occurred on almost all expenditure components, except the HFCE component, which grew by 0.25 per cent. GGFCE component experienced the deepest contraction at 45.38 per cent. This was followed by Exports of Goods and Services component, which contracted by 5.40 per cent, GFCF component by 3.72 per cent, and NPISHs FCE component by 0.97 per cent. On the other hand, Imports of Goods and Services, as the reducing factor in GDP, also experienced contraction at 6.95 per cent.

The group of provinces in Jawa Island in Q1 2023 recorded the domination of Indonesia’s economic structure spatially with a role of 57.17 per cent of GDP, followed by Sumatera Island at 21.82 per cent, Kalimantan Island by 9.00 per cent, Sulawesi Island by 6.87 per cent, Bali and Nusa Tenggara Islands by 2.68 per cent, and Maluku and Papua Islands by 2.46 per cent.

Meanwhile, with the abolition of the Community Activities Restrictions Enforcement policy on December 30, 2022, economic growth in most provinces has shown strengthening. In Q1 2023, strengthening growth on a YoY basis was recorded in the group of provinces in Sulawesi Island by 7.00 per cent, followed by Kalimantan Island with 5.79 per cent, Sumatera Island by 4.79 per cent; as well as the islands of Bali and Nusa Tenggara by 4.74 per cent. The group of provinces in Jawa Island as well as Maluku and Papua Islands experienced a slowdown in growth of 4.96 per cent and 1.95 per cent, respectively.

Fibre2Fashion News Desk (NB)