Jakarta: Indonesia's economy grew at its slowest pace in two years in the third quarter due to a decline in exports caused by softer commodity prices, according to data released on Monday.
The 4.94 percent year-on-year expansion fell below the forecasts in a Bloomberg survey. However, Amalia Adininggar Widyasanti, head of the Central Statistics Bureau (BPS), pointed out that this figure still exceeded the global average.
"In the midst of a slowing global economy, climate change, and decreasing commodity prices, Indonesia's economic resilience is reflected in the 4.94 percent economic growth," Widyasanti stated during a news conference on Monday.
Exports contracted by 4.26 percent, marking the most significant drop since the end of 2020, primarily due to reduced demand for commodities, including coal and palm oil. Bloomberg reports that overseas shipments have shrunk for six of the past seven months.
Last month, Indonesia unexpectedly raised interest rates by 25 basis points to six percent to protect the rupiah against increasing global economic uncertainty. The rupiah has outperformed its regional counterparts against a strengthening US dollar, but it has still declined and reached its lowest level against the greenback since April 2020, hitting 15,800.
The weakening currency might compel the government to consider raising fuel prices, given that the country imports half of its petroleum.
Bhima Yudhistira, an economist from the Center of Economic and Law Studies, commented, "While we can potentially maintain five percent growth due to our reliance on economic consumption, the natural resources sector is not sustainable because of exploitation and oversupply."__AFP
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