Indonesia’s Economy Beats Expectations with Impressive First Quarter GDP Growth

Indonesia’s economy showed impressive growth in the first quarter, surpassing market expectations with a GDP growth of 5.11 percent year-on-year. Finance Minister Sri Mulyani highlighted that the quality of economic growth had improved, with a decrease in the unemployment rate. She attributed the increase in household spending to low inflation, economic activities during Ramadan, and bonuses given during Idul Fitri.

Despite global uncertainties, Indonesia’s economy remained resilient, according to the minister. The government planned to use the state budget to maintain economic stability and further boost growth. The 5.11 percent growth in the first quarter was higher than the previous quarters in 2023 and exceeded forecasts from Moody’s Analytics and economists polled by Reuters.

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