Jakarta: The Indonesian economy increased by 4.87% in the first quarter compared to the previous year, its lowest growth rate in more than three years, official data showed Monday, May 5, compared to a growth rate of 4.91% expected by analysts of a Reuters survey.
The growth of January-March has been the slowest since the third quarter of 2021 and down 5.02% in the previous quarter.
On a basis not adjusted in the quarter in season, the gross domestic product contracted 0.98%, according to data from the statistics of Indonesia.
The economic growth of Indonesia rich in resources has oscillated about 5% from the pandemic.
President Prabowo Subaianto, who took office last year, is committed to raising this at 8% during his five -year term, but is confronted with challenges to slow global growth in the middle of a trade war, as well as weaken interior demand and a tighter budgetary position.
Exports linked to the United States of the greatest economy in Southeast Asia could be affected by heavy prices in the coming months, Jakarta discussed trade with Washington.
In the first three months of 2025, household expenditure, which represents more than half of the country's GDP, increased by 4.89% per year, the slowest rate in five quarters, despite higher expenses during the month of fasting of Ramadan and Eid al-Fitr festivities. Ramadan fell in March this year.
The growth in investments at 2.12% was the lowest in two years, while public spending has taken place.
There was an increase in the net contribution of GDP exports due to the weakening of imports.
The mining sector has decreased approximately 1% per year, assigned by a drop in coal prices and lower demand from international buyers, while maintenance has dropped production to the copper and fat gold mine operated by Freeport McMoran.
The agriculture sector has provided a light point in data, with growth of 10.5%, stimulated by rice and stronger corn crops compared to the previous year.
