A woman walks past a large screen displaying stock indexes in Jakarta on March 14, 2024. (Photo by BAY ISMOYO / AFP)
Jakarta, Indonesia — Indonesia’s economy grew more slowly in the second quarter of 2024 despite being supported by spending on religious holidays and increased household consumption, the country’s statistics agency said on Monday.
Growth in Southeast Asia’s largest economy was 5.05 percent in the second quarter, slightly lower than the previous quarter’s 5.11 percent, Statistics Indonesia said.
READ: Indonesian economy to steadily grow over next two years: World Bank
“The economic growth is also lower compared to the second quarter of 2023,” Statistics Indonesia deputy head, Mohamad Edy Mahmud told a press conference.
Despite the lower growth, Statistics Indonesia insisted the domestic economy is relatively robust and stable — but some economists doubted the country can maintain such growth.
“We don’t have much faith in the official data,” said Gareth Leather, senior Asia economist at Capital Economics.
“We don’t think this recovery will last. We expect growth to slow over the coming months.”
Indonesia’s central bank earlier this year announced a surprise interest rate hike to 6.25 percent, the highest for seven years, to support the rupiah, which had weakened against the dollar.