The declining in net exports has caused the economic slowdown and significant increase generally in the government expenditure and energy subsidies in particular

Indonesian economy posted steep slowdown in quarter I-2014. Indonesian economy posted growth of 5.21% (y-o-y), in quarter I-2014, which represented a decline compared with 5.72% (y-o-y) posted in quarter IV-2013. Moreover, economic growth posted in quarter I-2014, was far lower than 6.03% (y-o-y), which was registered in the same period in the previous year.  
Slower economic growth posted in quarter I-2014 is largely as a result of a significant decline in net exports. The significant contraction in net exports, adversely affected economic growth in quarter I-2014.  The -0.78% (y-o-y) contraction of exports posted in quarter I-2014,  was large enough to push net exports into negative territory, albeit -0.66% (y-o-y) contraction in imports.  The decline in net exports is by and larger attributable to a decrease in  exports of minerals such as coal and coal concentrates, which is a reflection of the performance of the mining sector that posted contraction of  -0.38% (y-o-y). The poor performance of the mining sector is largely as a direct consequence of the coming into force of Mining Law No.4/2009  on exports of unprocessed minerals with effect from 12 January 2014. Nonetheless, sluggish growth of Indonesian economy is also due to persisting uncertainty in the global economy, as reflected by decline of economic growth of the economy of China from 7.7% (y-o-y) in quarter IV-2013 to 7.4% (y-o-y) in quarter I-2014, which by implication adversely affected the performance of Indonesian economy. read more

The economy registered improvement largely due to growth in the services and net exports

Indonesian economy shows some slight improvements in quarter IV-2013, registering 5.72% growth year-on-year, which was lower than 6.18% in the same period last year. This was largely attributable to the incessant pressure on the current account and depreciation of Rupiah, coupled with rising inflation. The deficit on the current account over the last three quarters stoked inflation, which in turn induced an upward revision of reference interest rate, followed by depressed investment. Thus, despite the fact that the level of current account deficit showed a significant decline from USD 8.5 Billion in the previous quarter to USD 4 Billion in quarter IV-2013, the economic growth of 5.78% registered in 2013 was lower than 6.23 % recorded for 2012. read more

Indonesian economic growth in the third quarter slowed. This is line with predictions of GAMA Leading Economic Indicator which was generated on the basis of analysis of the   Macroeconomic Dashboard team.  Consensus results predicted that Indonesian economy would register the growth rate of   5.57% ± 0.28% in the quarter III-2013. The accuracy of GAMA LEI’s prediction and result of the Macroeconomic Dashboard consensus were very much in line with statistics released by the National Bureau of Statistics that showed Indonesian economic growth to have grown by 5.62% (y-o-y) in the quarter III-2013, which was lower than 5.83% (y-o-y) posted in the quarter II-2013.   read more