Surpassing the US and South Korea, Indonesia’s Strong Economy Grows by 5.17% in Q2 2023

Indonesia's economic growth
Indonesia's economic growth

Indonesia’s economic resilience remains steadfast in the face of persisting global uncertainties. The latest report from the Central Statistics Agency (BPS) reveals a remarkable growth trajectory, with the national gross domestic product (GDP) registering a commendable expansion of 5.17 percent year on year (yoy) for the second quarter of 2023. This resurgent growth in economy not only positions Indonesia as an economic standout but also surpasses the performance of significant global players such as the United States and Singapore.

Airlangga Hartarto, the Coordinating Minister for Economic Affairs, underlines the exceptional nature of Indonesia’s economic progression. He highlights that Indonesia’s economic growth outperforms neighboring nations and even exceeds growth figures of several major economies across the globe.

He states, “In comparison to other nations, Indonesia’s growth in economy stands resolute,” as he addresses a press conference held at the distinguished Coordinating Ministry for Economic Affairs headquarters in Jakarta on the 7th of August, 2023.

It is noteworthy to acknowledge that not all nations have disclosed their economic growth data for the second quarter of 2023. However, among those that have, countries like Singapore and Vietnam have reported growth rates of 0.70 percent and 4.14 percent, respectively.

Moreover, examining the performance of countries with robust economies, the United States witnessed an economic growth rate of 2.70 percent, South Korea marked a growth of 0.87 percent, Saudi Arabia exhibited a growth of 1.10 percent, while France and Germany’s economies grew by 0.40 percent and contracted by -0.62 percent, respectively.

When gauging the released economic growth data, Indonesia’s growth rate finds itself trailing only China and Uzbekistan. China boasts an impressive economic growth of 6.30 percent, while Uzbekistan’s growth registers at 5.60 percent.

Airlangga emphasizes, “Our growth stands behind only China and Uzbekistan,” reaffirming Indonesia’s robust performance within the global economic landscape.

Furthermore, Airlangga projects the trajectory of Indonesia’s economic growth to maintain its upward trajectory around the 5 percent threshold, persisting until the end of the year. This outlook nurtures optimism that the ambitious target of attaining a 5.3 percent economic growth rate in 2023, as delineated in the National Budget (APBN), is a realistic aspiration.

“We remain committed to realizing the 5.3 percent target as stipulated in the APBN,” articulates Airlangga Hartarto, fostering an environment of economic promise and determination.