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Indonesian quarterly growth slowest since 2010

Workers erect an iron reinforcement column at a high rise office construction site in Jakarta on Monday, May 6, 2013. The Indonesian economy expanded by 6.02 percent in the first quarter, official data showed Monday, the slowest pace for more than two years as exports fell due to the weak global economy. AFP PHOTO/ROMEO GACAD

JAKARTA—Indonesia’s economy expanded by 6.02 percent in the first quarter, official data showed Monday, the slowest pace in more than two years as exports fell due to the weak global economy.

It was the slowest quarterly, year-on-year growth in Southeast Asia’s biggest economy since the third quarter of 2010 and came in below forecasts. The economy grew 6.11 percent in the fourth quarter of last year.

Exports fell by 4.33 percent compared to the previous quarter, according to the statistics agency. Economists attributed the slowing growth to a fall in demand for commodities.

Indonesia is the world’s biggest producer of palm oil—found in a wide variety of everyday goods from soap to cosmetics and biscuits—and also a major exporter of coal, tin and rubber.

Many firms were experiencing “lower demand for commodities, not only in Europe and the US but in China as well,” said Bank Danamon Indonesia chief economist Anton Gunawan.

Nine economists surveyed by Dow Jones Newswires had forecast first quarter growth of 6.10 percent.

Last month, concerns about the weak recovery in the global economy led the central bank to lower its growth forecast for this year to 6.2-6.6 percent from 6.3-6.8 percent.

The economy grew 6.23 percent in 2012.

Despite the slight slowdown, Indonesia still has one of the best growth rates in the world, driven by strong domestic consumption and high levels of foreign investment.

Monday’s data will reduce the likelihood of the central bank hiking interest rates anytime soon from 5.75 percent, where they have been for more than a year, analysts said.

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Tags: economy , Growth , Indonesia

  • CmdrAdobo

    opposite reactions. while indonesia is not so happy about it, pinas parang nag piyesta umaangat lang 6%. Oh yeah election time. Government just love to confuse the ordinary people.

    • Chrisnadal19

      Do you know why we are happy about it? because it’s hard to achieve as our growth rates were historically low.. but once we get used to those high growth rates, don’t expect any celebration. Give some credit to the govt.

      • CmdrAdobo

        I know. but can we just relax? I think we deserve better. Ill never credit to govt who is busy campaigning now. Should do more important work.

      • Chrisnadal19

        it’s already given..it’s election time.. kahit saan sa mundo, pag election time, busy ang mga poltiko.

  • keen barcelo

    Almost twin economies, can collaborate w/ each other for faster growth.

  • buttones

    Can somebody tell me what PH first quarter results are? I seem to have missed it somewhere- thank you…

    • Remrick Patagan

      The results aren’t out yet, they are likely to be released in the last week of the month. :)

      • buttones

        So AFTER the election then, thank you.[Two months to produce?]

      • Remrick Patagan

        Yes. They follow a schedule of releasing the numbers. It usually takes longer to come out with first quarter data compared to the rest of the quarters.

      • buttones

        Thank you , from one who was schooled on the idea it was better to ask a really stupid question than make a realy stupid mistake – Why?

      • Remrick Patagan

        Why, as in why do they have the said schedule? Beats me, to be honest. :)

  • lagalagdude

    Go Philippines, beat the Indonesia.

    • http://www.facebook.com/alfredtorreiglesias Alfred Christian Torreiglesias

      as if… lagalagdude is another retarded Pinoy na nakikipa competencia kahit walang namang utak at pera

      • lagalagdude

        Dont say I dont have money and brain. to tell you honestly I pity you. You have a crab mentality . I can even buy you.

      • http://www.facebook.com/alfredtorreiglesias Alfred Christian Torreiglesias

        Cge nga!!!! Ano puede mo ipambayad saken hampaslupang pataygutom???

  • Diablo_III

    magkano kaya sa Pilipinas?

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