Indonesia’s economy saw significant growth in the first quarter, surpassing market expectations with a GDP growth of 5.11 percent year-on-year. Finance Minister Sri Mulyani noted that the quality of economic growth had improved, with a decrease in the unemployment rate. She highlighted that household spending had increased due to low inflation, economic activities during Ramadan, and bonuses given during Idul Fitri.
Despite global uncertainties, Indonesia’s economy remained resilient, according to the minister. The government planned to use the state budget to maintain economic stability and further boost growth. The 5.11 percent growth in the first quarter was higher than the previous quarters in 2023 and exceeded forecasts from Moody’s Analytics and economists polled by Reuters.
The success of Indonesia’s economy can be attributed to its diverse range of industries and strong domestic demand. The country has also been successful in attracting foreign investment and developing its infrastructure, which has helped it weather global economic challenges such as the COVID-19 pandemic.
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