Indonesia’s economy shrank by 0.92% qoq in the first quarter (Q1) of 2023, the first contraction in the economy since Q1 of 2022. It advanced by 5.03% yoy, after a 5.01% gain in Q4 of 2022. This was the 8th consecutive period of expansion, amid faster increases in household consumption (4.54% vs 4.48% in Q4) and a rebound in government consumption (3.99% vs -4.77%). Net trade contributed positively, as exports grew by 11.68% and imports – by 2.77%.
Meanwhile, fixed investment continued to grow (2.11% vs 3.33%). On the production side, output rose for agriculture (0.34%), manufacturing (4.43%), utilities (2.67%), wholesale & retail trade (4.89%), transport & warehouse (15.93%), information & communication (7.19%), and mining (4.92%).
The central bank maintained its growth outlook for this year at the upper end of its 4.5% to 5.3% range. In 2022, the economy grew by 5.31%, the most since 2013, boosted by pandemic-related restrictions removal and a global commodity boom that lifted exports to a record high.