JAKARTA. Indonesia survived the threat of recession, after Statistics Indonesia (BPS) released Indonesia's economic growth figures as measured by the value of Gross Domestic Product (GDP) in the second quarter of 2022, amounting to 5.44% year on year (YoY).
Previously, Indonesia's economic growth had experienced a slowdown after only growing 5.01% in the first quarter, lower than the growth in the fourth quarter of 2021 which was 5.02%.
BPS said Indonesia's economic growth was already higher than before the pandemic. This shows that the economic recovery that has taken place since the second quarter of 2021 continues.
This positive performance is supported by several factors, firstly, the moment of Eid al-Fitr which is able to encourage household consumption. Second, the provision of social assistance from the government is considered to be able to maintain the purchasing power of low-income groups.
In addition, BPS also saw an increase in commodity prices contributing to Indonesia's export activities. Even though it was held back during the implementation of restrictions on the export of CPO and its derivatives.
Based on these factors, almost all expenditure components experienced growth except for government consumption, which contracted by 5.24%.
Meanwhile, household consumption grew by 5.51%, Gross Domestic Fixed Capital Formation (PMTB) grew by 3.07%, exports grew by 19.74%, consumption of The Non-Profit Institutions Serving Households (LNPRT), grew by 5.04% and imports grew by 12.34%.
In detail, BPS recorded growth in almost all business sectors, except for the government administration and education services sectors, which recorded contractions.
Some of the business sectors that experienced the highest growth were the transportation and warehousing sectors as well as accommodation and food and beverage. This is due to the factor of Eid celebrations and the easing of travel requirements.
In contrast, the performance of the main industrial sectors such as the mining, agriculture, trade and construction industries experienced moderate growth.