The Indonesian economy advanced 5.27% year-on-year in the June quarter of 2018, following a 5.06% growth in the previous period. It is the highest growth rate since the December quarter 2013, driven by faster rises in private consumption and government spending while fixed investment grew firmly. For 2018, the government still expects the economy to grow by 5.4% though officials have said the latest outlook is 5.2%. The central bank’s 2018 estimate is between 5.1-5.2%.
On quarterly basis (q/q), Indonesia’s gross domestic product grew 4.21% in the three months to June of 2018, following a marginally revised 0.41% decline in the previous period. It is the first quarterly growth since the third quarter 2017 and the fastest on record, supported by a rebound in government spending and fixed investment while private consumption rose faster.
