Sign up | Log in



Home  >>   Daily News  >>Indonesia>>Economy>>Indonesia Q1 GDP slows to 4.92%
NEWS UPDATES Asean Affairs   6  May  2016  

Indonesia Q1 GDP slows to 4.92%

INDONESIA reported lower than expected growth in the first quarter, but many economists still expect enough of a rebound this year that the country can avoid further slowing and grow more than five per cent in 2016.

The statistics bureau said the day before yesterday that Southeast Asia’s largest economy expanded an annual 4.92 per cent in the January-March quarter, below the median 5.05 per cent in a Reuters poll and the October-December pace of 5.04 per cent.

Growth weakened for the fifth straight year in 2015, to 4.8 per cent, as poor commodity prices, contracting exports, tepid investment and waning consumption produced the lowest growth rate since 2009.

But the economy gained some momentum in the second half of last year as newly-appointed ministers accelerated government spending.

The statistics bureau took an optimistic tone.

“Our start in 2016 is better than the start of 2015,” said bureau head Suryamin. “Economic activity almost always slows in the first quarter, especially after growing higher in the fourth quarter.

In the first quarter of 2015, annual growth was 4.73 per cent.

Bureau data showed consumption was stable in the first quarter and there was a rise in government-led investment from a year earlier. However, investment growth was weaker than in the December quarter.

The bureau said a major reason for slower growth was a drought worsened by the El Nino weather phenomenon, which hurt crop output.

Darmin Nasution, chief economics minister, said another reason was slowing loan growth.

Euben Paracuelles, a Nomura economist in Singapore who had projected 5.4 per cent first-quarter growth, said there was “some loss in growth momentum” as he had expected stronger public investment.

“This will raise the question of the sustainability of the recovery, but we would still argue that the recovery will continue, led by domestic demand,” he said.

Tim Condon, ING’s Asia chief economist, said the lower growth pace in January-March than the previous quarter “is probably a one-off and the economy is in a sort of healing mode but obviously not a straight line path”.

Realising Indonesia cannot still rely on natural resources for growth, President Joko Widodo has worked to expand its weak manufacturing sector.

The Finance Ministry has offered tax incentives and promised a cut in corporate income taxes. It also plans a tax amnesty this year, which it believes will bring in significant funds to help finance development.

The central bank cut its key benchmark rate three times in the first quarter, by a total of 75 basis points. Also, Bank Indonesia has announced it will use a new benchmark in August, an effort to more effectively get banks to lower lending rates.

Some analysts expects more cuts to the benchmark. Rangga Cipta of Jakarta-based brokerage Samuel Sekuritas said the first quarter growth figure calls for a 50 basis point cut to the benchmark.

Widodo has pledged to get Indonesia’s growth up to seven per cent a year by 2019, the last year of his term.

The government’s target for growth this year is 5.3 per cent, while the central bank’s latest outlook was 5.2-5.6 per cent.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           May 6, 2016 Subsribe Now !
• Asian visitors continue to lead tourism sector growth Subcribe: Asean Affairs Global Magazine
• Cambodia bars cars near Angkor Wat temple
• Indonesia Q1 GDP slows to 4.92%
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

Malaysia's scandal-hit Najib seeks big win in Borneo state polls
FDI helps boost industrial infrastructure
Asean Analysis                   April 29, 2016
• Asean Analysis April 29, 2016
The Overlooked Gap in the Southeast Asia Maritime Security Initiative
Advertise Your Brand

Asean Stock Watch  May 4, 2016
• Asean Stock Watch-May 4, 2016
The Biweekly Update
• The Biweekly Update April 29, 2016

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand