Indonesia's Economic Growth Slows to 5.05% in Second Quarter

JAKARTA. Indonesia's economic growth, as measured by the value of Gross Domestic Product (GDP), in the second quarter of 2024 on an annual basis slowed down to only 5.05%. As for the first quarter of 2024, Indonesia's economic growth was recorded at 5.11% year on year. 

Referring to data from Statistics Indonesia, when viewed by expenditure, the largest source of growth still came from household consumption expenditure, which amounted to 2.62%. 

According to Moh. Edy Mahmud, Deputy for Balance Sheet and Statistical Analysis at BPS, this is inseparable from the influence of the long holidays in May and June, which increased public spending on transportation, communication, and hotels and restaurants.

After household consumption expenditure, the largest contributors to growth were exports of goods and services and imports of goods and services, which contributed 1.83% and 1.58% respectively.

Meanwhile, the components of government consumption expenditure, investment or gross domestic fixed capital formation, and consumption expenditure of non-profit institutions serving households (LNPRT), contributed 1.32%, 0.10%, and 0.12% respectively.

When viewed by the business sector, the largest source of growth came from the processing industry, which amounted to 0.79%. After that, the construction industry was the second contributor at 0.67%.

Then, based on the region, the region that made the largest contribution to economic growth in the second quarter was Java, at 2.89%. Other regions, such as Sumatra, Bali and Nusa Tenggara, Kalimantan, Sulawesi, Maluku, and Papua contributed 0.94%, 0.18%, 0.43%, 0.41%, and 0.22% respectively. (ASP/KEN)