BANK Indonesia (BI) said Indonesia’s economic growth in the third quarter of 2023 remained strong amidst global economic uncertainty, supported by solid domestic demand.

“Indonesia’s economic growth remains strong amidst uncertain global economic conditions,” said BI Communications Department Director, Nita A Muelgini to the media in Jakarta, Tuesday (11/07), 2023.

Data from the Central Statistics Agency (BPS) shows that Indonesia’s economic growth in the third quarter of 2023 continues to grow strongly at 4.94% year on year (yoy), although it has slowed slightly from growth in the previous quarter which was 5.17% (yoy).

In the future, Indonesia’s economic growth will be supported by domestic demand, both private and government consumption, as well as investment. With these developments, Bank Indonesia projects that economic growth for the whole of 2023 will remain in the range of 4.5 to 5.3%.

Economic growth that remained strong in the third quarter of 2023 was supported by household consumption which grew by 5.06% (yoy), in line with the continued increase in mobility, stable public purchasing power, and still high consumer confidence.

Meanwhile, government consumption experienced a contraction of minus 3.76% (yoy) which was mainly caused by personnel spending which experienced a shift due to the distribution of the 13th salary to the second quarter.

Overall investment growth increased to 5.77 percent (yoy) in line with continued government infrastructure development in various regions of Indonesia, including infrastructure development projects in the Archipelago Capital (IKN) in East Kalimantan.

On the other hand, although overall exports contracted by 4.26% (yoy) due to the decline in goods exports in line with the global economic slowdown, services exports continued to grow strongly supported by an increase in foreign tourist visits.

Indonesia’s economic growth which remains strong is also reflected in the business and spatial aspects. In terms of business fields (LU), most LU in the third quarter of 2023 continued to record positive growth, mainly supported by the processing industry, wholesale and retail trade, and construction.

This business growth is supported by domestic demand which remains strong, including government infrastructure development in various regions.

Meanwhile, spatially, economic growth in the third quarter of 2023 also occurred throughout Indonesia. The highest economic growth was recorded in the Sulawesi-Maluku-Papua (Sulampua), Java, Kalimantan, Sumatra and Bali-Nusa Tenggara (Balinusra) regions. [antaranews]