Indonesia’s economy grew 5.01% in Q4 of 2022

Jakarta, The Gulf Observer: Indonesia’s economy grew 5.01 percent in the fourth quarter of 2022 compared to the year-ago period on the back of positive growth in all business sectors, according to the Central Statistics Agency (BPS).

“Business fields with the highest growth were transportation and warehousing as well as accommodation, food and drink,” BPS head Margo Yuwono informed at a press conference here on Monday.

The processing industry was the largest source of growth, he added.

The transportation and warehousing as well as accommodation and food and drink sectors managed to grow by 16.99 percent yoy and 13.81 percent yoy, respectively, driven by increased community mobility and higher international and domestic tourist visits.

The rail transportation sub-sector recorded a growth of 61.94 percent yoy due to an increase in the number of passengers and goods transported, as well as an increase in people’s mobility during the school holidays, Christmas, and New Year.

The air transport sub-sector also managed to grow 44.07 percent, supported by an increase in the number of air transport passengers and an increase in the number of foreign tourists.

After the two sub-sectors, the highest growth was recorded in other service sectors (11.14 percent yoy), followed by corporate services (10.42 percent yoy), and information and communication (8.75 percent yoy), Yuwono informed.

Meanwhile, the trade sector recorded a growth of 6.55 percent yoy, mining 6.46 percent yoy, the processing industry 5.64 percent yoy, and the agricultural sector 4.51 percent yoy.

Then, financial services recorded year-on-year growth of 3.76 percent, water supply 2.84 percent, health services 2.47 percent, electricity and gas procurement 2.31 percent, government administration 1.78 percent, construction 1.61 percent, and education services 0.42 percent.

“All the main sectors, namely the manufacturing industry, trade, mining, agriculture and construction are continuing positive trends and growing impressively,” he said.

In the fourth quarter of 2022, the processing industry was the source of the highest growth at 1.17 percent, Yuwono informed. It was followed by trade (0.84 percent), transportation and warehousing (0.67 percent), information and communication (0.55 percent), and other sectors (1.78 percent).

The processing industry’s growth was driven by downstream and foreign demand. Meanwhile, the basic metal industry sub-sector managed to grow by 15.12 percent yoy driven by increased domestic ferronickel production and increased export demand.

Meanwhile, the food and beverage industry sub-sector grew by 8.68 percent yoy due to an increase in the production of agricultural raw materials (rice and palm oil) and higher production of crude palm oil (CPO) and crude palm kernel oil (CPKO), as well as high foreign demand.