JAKARTA (AFP) – Indonesia’s economic growth accelerated to a nine-year high in 2022 despite global uncertainty and a final-quarter slowdown, official data showed yesterday, owing to soaring commodity prices and easing COVID-19 curbs.
Indonesia was badly affected by the pandemic, with its exports and tourism-reliant economy taking a massive hit in 2020 as gross domestic product (GDP) shrunk by 2.07 per cent – its first recession since the 1997 Asian financial crisis.
But Southeast Asia’s largest economy has bounced back since then, posting economic growth last year of 5.31 per cent, Statistics Indonesia said yesterday, the highest level since 2013.
“The figures show that Indonesia’s economy grew solidly in 2022,” statistics agency head Margo Yuwono said.
He said growth was propelled by high export prices and the lifting of travel restrictions, with dropped quarantine requirements in March spurring business and spiking tourist arrivals.
The country welcomed more than 740,000 visitors in the first half of the year, an increase of more than 900 per cent on-year. The annual rise came despite slowing growth in the final quarter of the year after a strong July-September.
The economy expanded 5.01 per cent year-on-year in October-December, down from 5.72 per cent in the previous three months.
But it still maintained its annual rise from pandemic lows after expanding 3.69 per cent in 2021 as coronavirus cases started to decline and export prices for key commodities like palm oil, coal and nickel rose significantly.
The country’s economic growth is expected to slow slightly this year despite the recovery, according to economists.
“Further weakness is likely as weak global demand, high inflation and elevated interest rates drag on activity,” said senior Asia economist at Capital Economics Gareth Leather.
“We expect growth to slow further over the coming quarters.”
