Jakarta: The national economic recovery currently underway in Indonesia remains intact given increasing community mobility and amidst escalating geopolitical tensions between Russia and Ukraine, Bank Indonesia (BI) has said.
According to the latest data published by the Central Statistics Agency (BPS), domestic economic growth was solid and stable in the first quarter of 2022 at 5.01% (yoy) compared with 5.02% (yoy) in the previous quarter.
"Positive economic performance in Indonesia has been fuelled by growing domestic demand and maintained export performance. Furthermore, the national economic gains have been replicated in most sectors and all regions," BI Communication Department Head Erwin Haryono said in a press release on Monday.
"Moving forward, the Indonesian economy is expected to gain momentum, with Bank Indonesia projecting growth at 4.5-5.3% in 2022, supported by a faster vaccination rollout, broad reopening of economic sectors as well as policy stimuli instituted by Bank Indonesia, the Government and other relevant authorities," he added.
In terms of spending, the economic recovery in the first quarter of 2022 was driven primarily by household consumption, which accelerated significantly to 4.34% (yoy) from 3.55% (yoy) in the previous period.
Such developments were explained by increasing community mobility in line with looser mobility restrictions in the first quarter of 2022 and a faster vaccination rollout.
"Investment grew 4.09% (yoy) in the reporting period, mainly supported by non-building investment, yet growth of building investment was also sustained," he stated,
"On the other hand, government consumption contracted 7.74% (yoy) in line with improving Covid-19 pandemic conditions that reduced procurement and social assistance disbursements, particularly for Covid-19 containment and mitigation measures," he added.
Exports continued to perform well, expanding 16.22% (yoy) on the back of solid demand in Indonesia's major trading partners and the limited impact of geopolitical tensions between Russia and Ukraine.
Imports in the first quarter of 2022 grew 15.03% (yoy) in response to strong export performance and increasing domestic demand.
"Nearly all economic sectors recorded positive growth in the first quarter of 2022, particularly the Manufacturing Industry, Retail and Wholesale Trade as well as Transportation and Storage, given greater community mobility in all regions," he explained.
"Spatially, all regions of the Indonesian archipelago recorded positive economic growth in the reporting period, led by Sulawesi-Maluku-Papua (Sulampua), followed by Java, Sumatra, Bali-Nusa Tenggara (Balinusra) and Kalimantan," the BI official concluded.
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