Indonesia’s Economy 2022 Recorded Highest Value Since 2013

Odd-even system in Jakarta

Economic recovery after the Covid-19 pandemic is going very well amidst global problems. The year 2022 is proof of that success. The Central Statistics Agency (BPS) said Indonesia’s economy in 2022 grew 5.31 percent (year on year/yoy), the highest since 2013.

BPS data noted that Indonesia’s economy in 2013 reached 5.56 percent. Since then, the growth rate has slowed. This time it has strengthened again after contracting 2.07 percent in 2020.

Meanwhile, economic growth for 2022 is very strong, in line with the realization in the first to fourth quarters which consistently grow above 5 percent.

In the first quarter, it grew 5.02 percent. Then in the second quarter, it rose to 5.46 percent, and in the third quarter, it jumped 5.73 percent so that in the fourth quarter it grew 5.01 percent.

High economic growth in 2022 is supported by exports which grew high by 16.28 percent, and also imports by 14.75 percent. This export performance was driven by the increase in prices for Indonesia’s main commodities on the international market over the past year.

Head of BPS, Margo Yuwono, explained that the increase in Indonesia’s exports was due to the price increase of superior commodities, such as coal, crude oil, and natural gas.

Meanwhile, high imports were supported by increased imports of capital goods and raw materials. According to him, high imports indicate strengthening demand for the domestic production sector.

Household consumption, which contributed the most to economic growth, also continued to strengthen to close to 5 percent, namely 4.93 percent.

The investment (PMTB) also grew strongly 3.87 percent over the past year. “Growth of PMTB is influenced by all types of capital goods, especially types of machinery and vehicles,” he concluded.

Furthermore, economic growth is still centered on the islands of Java and Sumatra. Where Java grew 5.31 percent with a share of 56.48 percent and Sumatra grew 4.69 percent with a share of 22.04 percent.

Then, Kalimantan grew 4.94 percent with a share of 9.23 percent of the national GDP, and Sulawesi grew 7.05 percent and a share of 7.03 percent.

Meanwhile, Bali and Nusa Tenggara grew 5.08 percent and contributed 2.72 percent. Then, Maluku and Papua grew the highest by 8.65 percent, but their share was the lowest, only 2.50 percent of the national economy.