This also shows that the fiscal consolidation carried out by the government in 2023 will not hold back the accelerated pace of national economic growth
Jakarta (Armfalcon.com) – Minister of Finance (Menkeu) Sri Mulyani said the national economy continues to show resilience with realized growth of 5.03 percent over the same period the previous year (year-on-year/yoy) in quarter I-2023, amidst the dynamics of the global economy which continues to slow down.
In fact, this figure exceeded most predictions of market analysts and was above China, which grew 4.5 percent (yoy) in the same quarter.
“Resilience can be seen from both the consumption and production sides,” said Sri Mulyani in an official statement in Jakarta, Friday.
From the consumption side, strong economic growth in the first quarter of 2023 was supported by household consumption activities which grew by 4.5 percent (yoy) or strengthened compared to growth in the first quarter of 2022 of 4.3 percent and grew positively by 0.2 percent compared to the previous quarter (quarter-to-quarter/qtq).
He believes this condition reflects the maintained strengthening of people’s purchasing power which is supported by price stability in the country, as well as increasing people’s incomes in line with continued job creation.
In this case, the State Revenue and Expenditure Budget (APBN) plays an important role, both as a shock absorber (shock absorbers) in reducing global inflationary pressures as well as boosting economic activity.
Government consumption returned to positive growth by 4 percent (yoy), thereby encouraging private sector activity. The accelerated absorption of APBN spending, particularly the School Operational Assistance (BOS), has boosted government consumption growth this quarter.
Components of APBN spending that are included in government consumption, such as goods spending grew high by 36.4 percent and personnel spending grew 1.2 percent. In addition, state spending continues to be optimized to support the sustainability of economic recovery and maintain people’s purchasing power through social assistance programs.
“This also shows that the fiscal consolidation carried out by the government in 2023 will not hold back the pace of accelerating national economic growth,” he stressed.
From the production side, said the State Treasurer, leading sectors continued to grow positively, including the primary sector. The agricultural sector grew relatively moderately by 0.3 percent (yoy), one of which was caused by the shift in the harvest season to the second quarter due to changes in weather.
Meanwhile, the mining sector continued to grow strongly by 4.9 percent (yoy) amid moderation in global commodity prices.
The manufacturing and trade sectors are the main contributors from the production side. The manufacturing sector grew by 4.4 percent (yoy) supported by strong domestic demand ahead of the month of Ramadan and high demand for downstream commodities such as crude palm oil (CPO)crude palm oil/CPO) and processed minerals.
In line with the relatively strong growth in the manufacturing sector, the trade sector also grew briskly by 4.9 percent (yoy), mainly driven by growth in the automotive trade of 6.9 percent (yoy).
In addition, the Minister continued, the tourism support sector continued its strong recovery and returned to double-digit growth in the first quarter. The transportation and accommodation sectors grew by 15.9 percent (yoy) and 11.6 percent (yoy), respectively.
The flow of tourism, especially foreign countries, continues to enter strongly into the country. The average level of foreign tourist arrivals continued to increase in the first quarter, reaching 750 thousand per month and starting to approach the pre-pandemic level of 1.2 million visits.
The relaxation of social restrictions in the world, especially the relaxation of restrictions on mobilization in China, has encouraged the continued recovery of this sector. Organizing events at both the national and international levels also boosts Indonesia’s attractiveness as a tourist destination.
Thus, Sri Mulyani estimates that the performance of economic growth in 2023 will still be quite promising amidst the global economic slowdown. The resilience of the economic growth rate up to the first quarter is a strong indication that the resilience of the national economy in the face of global pressures continues to improve.
“The 2023 State Budget has been designed in a conservative and anticipatory manner towards the global economic slowdown, including the propagating impact of moderating commodity prices,” said Sri Mulyani.
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Reporter: Agatha Olivia Victoria
Editor: Biqwanto Situmorang
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