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Indonesia’s economic growth slowed in the second quarter of 2024 despite support from religious festival spending and increased household consumption, the country’s statistics agency said on Monday.
Indonesia’s Statistics Bureau said Southeast Asia’s largest economy grew 5.05% in the second quarter, slightly lower than 5.11% in the previous quarter.
“Economic growth also declined compared to the second quarter of 2023,” said Mohammad Eddi Mahmud, deputy director of Statistics Indonesia, at a press conference.
Despite the slowdown, Statistics Indonesia insists the domestic economy is relatively strong and stable – but some economists doubt the country can sustain that growth.
“We don’t put a lot of faith in the official data,” said Gareth Leather, senior Asia economist at Capital Economics.
“We do not think this recovery will be sustainable. We expect economic growth to slow in the coming months.”
Indonesia’s central bank announced a surprise rate hike to 6.25% earlier this year, the highest level in seven years, to support the rupiah, which has weakened against the dollar.
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