This photo shows a general view of a traffic jam on a main roads leading into the city center of Jakarta on May 8, 2024 as thin haze of pollution sits over the city’s skyline.
Bay Ismoyo | Afp | Getty Images
Indonesia’s annual economic growth accelerated to 5.12% in the second quarter from 4.87% in the previous three months, official data showed Tuesday.
A Reuters poll had expected growth of 4.80%. The second-quarter growth rate was the fastest since the second quarter of 2023, data from the statistics bureau showed.
On a non-seasonally adjusted, quarter-on-quarter basis, gross domestic product expanded 4.04% in April-June, Statistics Indonesia said.
Ahead of Tuesday’s data, Bank Indonesia, which has cut policy rates four times since September, forecast economic growth would be in a range of 4.6% to 5.4% this year.
Manufacturing helped drive the stronger-than-expected growth, helped by demand for export goods such as palm oil products and base metals as well as domestic demand for pharmaceuticals.
Frontloading of export orders as buyers sought to get ahead of U.S. tariffs has seen the value of exports rise in the first half of the year.