Indonesia's Economy in Quarter III-2022 Grows by 5 percent

JAKARTADAILY.ID –The Central Statistics Agency (BPS) announced that economic growth in the third quarter of 2022 reached 5.72 percent on an annual basis (yoy).

"Indonesia's economic growth in the third quarter of 2022 is 1.81 percent quarter to quarter. When compared year on year it is 5.72 percent," said Head of BPS Margo Yuwono in a press release.

Meanwhile, Indonesia's economic growth is based on Gross Domestic Product (GDP) in the third quarter of 2022 at current prices of Rp 5,901.2 trillion and Rp 2,976.8 trillion at constant prices.

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The market consensus compiled by CNBC Indonesia from 14 institutions estimates that the national economic growth quarter to quarter (quarter to quarter/qtq) will reach 1.66 percent.

For the record, the Indonesian economy grew 5.44 percent (yoy) and 3.72 percent (qtq) in the second quarter of 2022. In the first quarter of 2022, Indonesia's economy grew 5.01 percent (yoy) but contracted 0.95 percent (qtq).

The poll results are in line with projections from Bank Indonesia (BI) and the government. Finance Minister Sri Mulyani Indrawati estimated that Indonesia's economic growth in the third quarter of 2022 would reach 5.7 percent, while BI projected growth of above 5.5 percent as reported by cncbindonesia.com Tuesday, November 8, 2022.

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A number of institutions surveyed explained the high economic growth in July-September 2022, one of which was due to the low basis of calculation in the third quarter of 2021.

The domestic economy only grew 3.51 percent (yoy) in July-September last year after Indonesia was hit by the Delta variant of the Covid-19 pandemic.

The government even had to implement an Emergency Community Activity Restriction (PPKM) in early July so that the economy almost stopped.

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"Economic growth will be driven by increasing public demand amidst the easing of mobility, increased business activity as reflected in the Manufacturing PMI, as well as a low calculation base in the third quarter of 2022," said Bank Mandiri economist Faisal Rachman, in MacroBrief.

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