Indonesia’s economy exceeded expectations in the first quarter, with a GDP growth of 5.11 percent year-on-year. This growth was largely driven by increased domestic consumption during the Islamic festive season and the presidential election. Finance Minister Sri Mulyani stated that the quality of economic growth had improved significantly, as evidenced by a decrease in the unemployment rate.
Despite global uncertainty, Indonesia’s economy showed resilience, according to the minister. She promised to use the state budget to maintain economic stability and further boost growth. Household spending was a key driver of economic growth, fueled by low inflation, increased economic activity during Ramadan, and bonuses for Idul Fitri and civil servant pay raises.
Indonesia’s strong economic performance demonstrates its ability to navigate global challenges and sustain growth. The 5.11 percent growth figure was higher than the previous quarter’s 5.04 percent and exceeded forecasts from Moody’s Analytics and a consensus forecast from Reuters economists. This impressive achievement is a testament to Indonesia’s robust business landscape and its ability to adapt to changing circumstances.
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