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Indonesia’s economy grows 5.7% in 3Q 2022

The number was higher than the 5.4 percent growth from the second quarter

The Jakarta Post reported that the MSMEs industry is showing the most promise, and that it contributes over 61 percent of the country’s total GDP. Hani Santosa/Shutterstock

The third quarter showed Indonesia’s fastest economic growth rate, growing 5.7 percent YoY on the back of improved investment and government spending, according to Reuters.

The number was higher than the 5.4 percent growth from the second quarter, but still relatively short of the 5.9 percent forecast.

Airlangga Hartarto, the country’s chief economic affairs minister, called this “impressive,” despite the risks looming on the horizon, saying that the government’s 5.2 percent objective for 2022 GDP growth is expected to be fulfilled, and strong domestic demand should buffer the economy from the impact of a slowdown in exports.

Gareth Leather, senior Asia economist at Capital Economics, said, “Economic growth in Indonesia accelerated in the third quarter, but this is likely to be as good as it gets,” adding, “We expect lower commodity prices, tighter monetary policy, and elevated inflation to drag on growth over the coming quarters.”

The Jakarta Post reported that the micro, small, and medium enterprises (MSMEs) industry is showing the most promise, and that Hartarto mentioned that it contributes over 61 percent of the country’s total GDP.

More: Indonesia’s digital economy set to reach $330 billion by 2030

Many Indonesian-based businesses are glad to step up and offer MSMEs a bigger stage. Through the hyperlocal effort, Tokopedia, the leading e-commerce site in the country, aims to assist Indonesia’s 12 million business activists—nearly all of whom are regional MSMEs—in achieving economic success.

The goal of the hyperlocal project is to provide MSMEs with equal opportunities for growth and development throughout Indonesia, regardless of whether they were located in rural or urban regions. Additionally, customers will have access to a greater choice of goods they need quicker and more efficiently.

President Joko Widodo is aware of the growth of MSMEs despite economic uncertainty, according to Chief of the Presidential Staff Office (KSP) Moeldoko.

“Amid the uncertainty in global conditions, MSMEs and formal and informal sectors will remain our mainstay. Yet, Praise be to God, our economy fared relatively well despite the ongoing global crises,” said Moeldoko, reported ANTARA News.

The Property Report editors wrote this article. For more information, email: [email protected].

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