Indonesia skyline

Indonesia GDP (USD bn)

GDP in Indonesia

GDP growth is steady in Q1

The economy grew at a stable pace in the first quarter of 2023, with GDP expanding 5.0% on an annual basis. Q1’s reading came in slightly above market expectations.

Household spending growth was stable at 4.5% year on year in Q1, despite still-elevated inflation. Meanwhile, fixed investment growth slowed to 2.1% in Q1, from the 3.3% expansion recorded in the previous quarter, amid higher interest rates. Lastly, government spending rebounded and grew 4.0% in Q1 (Q4: -4.8% yoy), partly due to a low base of comparison—government spending shrank 6.6% in Q1 2022.

On the external front, growth in exports of goods and services decelerated to 11.7% year on year in the first quarter (Q1: +14.9% yoy) amid a less supportive global economic environment. Meanwhile, growth in imports of goods and services slowed to 2.8% in Q1 (Q4: +6.3% yoy), likely due to cooling investment activity.

In quarter-on-quarter terms, GDP contracted 0.9% in Q1, a somewhat less pronounced decrease than Q4’s 1.0% sequential decline.

Commenting on the outlook, Nicholas Mapa, senior economist at ING, noted:

“Indonesia’s growth prospects look relatively upbeat as inflation edges closer to the central bank’s 2-4% target. Easing price pressures could bolster household spending further while also allowing Bank Indonesia (BI) to eventually cut policy rates by the third quarter. A pivot for BI to rate cuts could reinvigorate bank lending and capital formation, which would give growth momentum another reason to accelerate.”

Indonesia GDP Chart

This chart displays GDP (USD bn) for Indonesia from 2013 to 2022.

Indonesia GDP Data

2017 2018 2019 2020 2021
GDP (USD bn) 1,016 1,043 1,120 1,062 1,188

Free sample report

Interested in economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest