Indonesia’s economic growth slows in second quarter
Summary
Indonesia’s economy grew 5.3 percent in the second quarter, slightly slower than the previous quarter but ahead of forecasts, supported by strong household and government spending. The government is targeting faster growth and plans additional stimulus later this year as concerns persist over interest rates and investment.
Key Points
- Indonesia’s GDP expanded 5.3 percent in April-June, down from 5.6 percent in the previous quarter but above economists’ expectations.
- Household expenditure rose 5.1 percent and government spending climbed nearly 16 percent, helping support growth.
- President Prabowo Subianto’s government is aiming for 8 percent growth by 2029, though experts say the target looks difficult to achieve.
- Finance Minister Purbaya Yudhi Sadewa said the government will use fiscal and monetary measures to stimulate the economy for the rest of the year.
