The economic growth of Indonesia has been steadily increasing since the pandemic. In the first quarter of 2023, the country’s economy grew 5.03% year-on-year (YoY), with one of the largest contributors being the manufacturing industry.
According to Edy Mahmud, Deputy for Balance and Statistical Analysis at the Central Statistics Agency (BPS), Indonesia’s Gross Regional Domestic Product (GRDP) at current market prices for the first quarter of 2023 was IDR 5,071.5 trillion, while the GRDP at constant market prices was IDR 2,961.2 trillion.
Despite the slowdown in the global economy and the decline in commodity prices of major export products, Indonesia’s economy still managed to grow by 5.03% YoY. Edy Mahmud stated this in a press conference on Friday, May 5th, 2023.
Edy mentioned that Indonesia’s annual economic growth has consistently remained constant at 5%, indicating that the economy is still stable. “From Q4 2021 to Q1 2023, our economy has grown at a rate of 5% or more,” said Edy.
Indonesia’s economy grew positively in the first quarter of 2023 across all sectors, particularly in industries such as manufacturing, trade, mining, agriculture, and construction, which dominated the country’s economy.
According to Edy, the manufacturing industry contributed 18.57% to Indonesia’s economy in Q1 2023, followed by trade (12.95%), mining (11.85%), agriculture (11.77%), and construction (9.88%).
Edy explained that these sectors grew positively and accounted for approximately 65.02% of the GDP in the first quarter of 2023. Additionally, three industries recorded the highest growth rate in Q1 2023, namely transportation and warehousing (15.93% YoY), accommodation and food and beverage services (11.55% YoY), and other services (8.9% YoY).
The growth of these three industries was supported by the increase in mobility of the population, the rise in foreign tourist arrivals, and the hosting of several national and international events.
The growth of the Indonesian economy indicates a positive outlook for the country’s economic development and its ability to overcome challenges.
