Slow Growth Rate and Strong Inflationary Pressures

Abstrak

The Indonesian economy grew at 6.02%—slightly lower than growth in the previous quarter (6.11% yoy recorded at the end of December 2012). Private sector consumption recorded 5.17% (yoy) growth rate—slightly dropped compared to previous quarter (5.36% yoy). The lower growth rate was attributed to strong inflationary pressures during the period. However, private sector consumption kept on expanding—thanks to regional elections taking place in some major areas in Indonesia (Bali, Central Java, etc.). Therefore, although slightly eased off, household/private consumption still contributed as the economy's main engine of growth.