JAKARTA (AFP) – Indonesia’s economy grew more slowly in the second quarter (Q2) of 2024 despite being supported by spending on religious holidays and increased household consumption, the country’s statistics agency said yesterday.
Growth in Southeast Asia’s largest economy was 5.05 per cent in the second quarter, slightly lower than the previous quarter’s 5.11 per cent, Statistics Indonesia said.
“The economic growth is also lower compared to the second quarter of 2023,” Statistics Indonesia Deputy Head Mohamad Edy Mahmud told a press conference.
Despite the lower growth, Statistics Indonesia insisted the domestic economy is relatively robust and stable – but some economists doubted the country can maintain such growth.
“We don’t have much faith in the official data,” said Senior Asia economist at Capital Economics Gareth Leather.
“We don’t think this recovery will last. We expect growth to slow over the coming months.”
Indonesia’s central bank earlier this year announced a surprise interest rate hike to 6.25 per cent, the highest for seven years, to support the rupiah, which had weakened against the dollar.
