Indonesia Q4 GDP growth faster than expected

[Indos]

Indonesia Q4 GDP growth faster than expected

© Reuters. General view of the capital city of Jakarta, Indonesia, August 4, 2022. REUTERS/Willy Kurniawan/Files​

JAKARTA (Reuters) - Indonesia posted faster-than-expected annual economic growth in the fourth quarter of 5.01%, official data showed on Monday.

A Reuters poll had expected gross domestic product in the fourth quarter to be 4.84% bigger than the same period last year, below the 5.72% annual expansion recorded for the previous three months.

Indonesia's full-year 2022 GDP growth was 5.31%, faster than 2021's growth of 3.69%. The poll had predicted 5.29%.

Indonesia 2022 GDP growth races to 9-year high on commodities boom By Reuters

Indonesia 2022 GDP growth races to 9-year high on commodities boom

www.investing.com

 

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The growth is not pushed by Government spending as Indonesia state budget in 2022 only has deficit at 2.38 % of GDP. Comparison with India state budget with around 9 % Deficit of their GDP for their 2022-2023 Fiscal year.

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Indonesia's 2022 unaudited budget deficit at 2.38% of GDP -Finance Minister​

Economy (Jan 03, 2023 04:50AM ET)

By Stefanno Sulaiman and Gayatri Suroyo

JAKARTA (Reuters) - Indonesia recorded a 464.3 trillion rupiah ($29.77 billion)fiscal deficit in 2022, or 2.38% of gross domestic product, based on unaudited data, Finance Minister Sri Mulyani Indrawati said on Tuesday, much smaller than originally forecast.

The government had initially planned for a budget deficit of 4.85% of GDP. Revenue collection, however, got a boost from higher commodity prices and the easing of COVID restrictions last year, prompting the government to revise down the deficit forecast several times.

The latest figure was below a forecast on Dec. 21, when President Joko Widodo said he expected a 2.49% deficit, and means fiscal consolidation has been faster than planned.

By law, the government has room to spend more, with a legal budget deficit ceiling of 3% of GDP waived for three years from 2020 to allow for a pandemic response.

Southeast Asia's largest economy likely grew 5.2% last year, Sri Mulyani told an online news conference. Economic growth in 2021 was 3.7% and the government is targetting a 5.3% GDP expansion this year.

Indonesia recorded 2,626.4 trillion rupiah of revenue last year, up 30.6% from 2021 and about 16% bigger than the target, the minister said.

The government spent 3,090.8 trillion rupiah, slightly below the planned amount and representing 11% growth from the previous year.

Of that, 551.2 trillion rupiah was spent to subsidise fuel prices and power tariffs. This was also below previous official estimate.

The government raised subsidised fuel prices by about 30% in September due to budget pressures stemming from high global energy prices. At the time, authorities said the fuel price hike would cut the energy subsidy budget by some 48 trillion rupiah, bringing the total estimated budget to 650 trillion rupiah.

Given the strong 2022 financial position, Sri Mulyani has said she would carry over any excess cash to reduce borrowing in 2023.

She did not disclose the amount of excess cash by the end of 2022, but reiterated a commitment to "optimise" the fund "to anticipate financing needs amid global economic uncertainties".

Indonesia expects a fiscal deficit of 2.84% of GDP in 2023.

Indonesia's 2022 unaudited budget deficit at 2.38% of GDP -Finance Minister By Reuters

Indonesia's 2022 unaudited budget deficit at 2.38% of GDP -Finance Minister

www.investing.com

 

[Indos]

Manufacturing Activity of Indonesia Accelerates Modestly in January 2023​

05 February 2023 |

• Manufacturing Industry
• Manufacturing PMI

Manufacturing activity continued to expand in the first month of 2023, even slightly accelerating from the preceding month. The S&P Global Indonesia Manufacturing Purchasing Managers’ Index (PMI) showed a reading of 51.3 points in January 2023, up modestly from 50.9 points in December 2022 (with 50.0 being the threshold that separates contraction from expansion in the manufacturing sector).

Operating conditions continued to improve in Indonesia’s manufacturing sector in January 2023, supported by higher levels of output and new orders (that both rose at their fastest in three months). Respondents in the survey stated that there were high levels of client requests that conversed into hard business wins at the start of 2023. Promotional activities also supported improving market demand.

However, a trend that has been ongoing for a long time, it are domestic orders that support the manufacturing sector. New export orders declined for the eight-straight month. And so, Indonesia’s manufacturing sector is highly dependent on domestic orders (fortunately Indonesia forms a huge market).

Manufacturing Activity of Indonesia Accelerates Modestly in January 2023 | Indonesia Investments

Manufacturing activity continued to expand in the first month of 2023, even slightly accelerating from the preceding month. The S&P Global Indonesia Manufacturing Purchasing Managers’ Index (PMI) showed a reading of 51.3 points in January 2023, up modestly from 50.9 points in December 2022 (with...

www.indonesia-investments.com

 

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[Indos]

Indonesia's GDP grew 5.31% in 2022, hitting 9-year high​

Economic growth back to pre-COVID level but global slowdown weighs on 2023 outlook

Containers at the Tanjung Priok port in Jakarta on Aug. 3, 2022. Indonesia's economy last year grew at the fastest pace since 2013. © Reuters

NANA SHIBATA and ISMI DAMAYANTI, Nikkei staff writers

February 6, 2023 13:26 JST
Updated on February 6, 2023 14:45 JST

JAKARTA -- Indonesia's economy grew 5.31% in 2022 from a year earlier, government data showed on Monday, highlighting that Southeast Asia's largest economy has now returned to a pre-pandemic economic growth path as the government eased COVID restrictions and businesses got back into gear.

The growth rate of last year's gross domestic product was the highest in the past nine years and accelerated from a 3.69% expansion in 2021. Indonesian President Joko "Jokowi" Widodo had previously forecast growth of 5.2% to 5.3% for 2022.

Indonesia's GDP grew 5.31% in 2022, hitting 9-year high

Economic growth back to pre-COVID level but global slowdown weighs on 2023 outlook

asia.nikkei.com

 

[Indos]

Indonesia's Economic Achievements in the Jokowi Vs SBY Era, Who is the Best?​

Photo: Arie Pratama

NEWS - Editor, CNBC Indonesia
06 February 2023 13:40


Jakarta, CNBC Indonesia - The value of Gross Domestic Product (GDP) during the administration of President Joko Widodo, or Jokowi, rose 36.7% during his eight-year reign. The increase is much smaller than the era of President Susilo Bambang Yudhoyono (SBY).


Based on data from the Central Statistics Agency (BPS), the value of GDP on the basis of constant prices in 2000 at the beginning of President SBY's administration or 2004 was recorded at Rp 1,660.6 trillion.

In 2013, the value of Indonesia's GDP on the basis of constant prices in 2000 was recorded at Rp 2,770.3 trillion. This means that in that period the value of domestic GDP increased by Rp 1,109.7 trillion or an increase of 66.83%.

The BPS changed the base year of GDP calculation from 2000 to 2010. Based on the calculation of the base year 2010, GDP on constant prices in 2013 was recorded at Rp 8,156.49 trillion.
2013 was the last term of President SBY in full office. At the end of October 2014, the government changed from SBY to Jokowi.

In 2014, the value of GDP at constant prices was recorded at Rp 8,564.87 trillion. Eight years later or in 2022, the value of GDP at constant prices is recorded at IDR 11,710.4 trillion.
This means that the value of Indonesia's GDP increased by IDR 3,145.53 trillion or 36.73% during the era of President Jokowi.

In percentage terms, the economic growth of President SBY's era is also higher. During 2004-2013, Indonesia's economic average grew by 5.78% while in 2014-2022 it was 4.12%.

Both President Jokowi and SBY have benefited from the commodity boom. However, Jokowi's reign was tested by the Covid-19 pandemic that devastated the global and domestic economy.
SBY benefited from a commodity boom in the mid-2000s supported by China's double-digit growth while Jokowi's commodity boom in 2022 was due to the Russian-Ukrainian war.

CNBC INDONESIA RESEARCH
research@cnbcindonesia.com

Capaian Ekonomi RI Era Jokowi Vs SBY, Siapa Terbaik?

ilai Produk Domestik Bruto (PDB) pada masa pemerintahan Presiden Joko Widodo, atau Jokowi, naik 36,7%,

www.cnbcindonesia.com

 

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Infographic: China Is the World's Manufacturing Superpower

This chart shows the top 10 countries by share of global manufacturing output in 2019.

www.statista.com

 

[Indos]

Foreign Investment Rises 40%, Bahlil: Trust in Indonesia Is Great​

Ikhsan Permana, MNC Portal ·
Wednesday 08 February 2023 12:55 WIB

Tentang Jakarta

Jakarta adalah Ibu Kota Republik Indonesia. Provinsi DKI Jakarta terbagi menjadi lima wilayah Kota Administrasi dan satu Kabupaten Administrasi dengan...

www.jakarta.go.id

JAKARTA - Investment Minister Bahlil Lahadalia said that foreign investment entering Indonesia experienced a growth of up to 40%. This reflects the large confidence of foreign investors in Indonesia.

Based on BKPM data, foreign direct investment (FDI) in 2022 increased by 40% when compared to the previous year.

"Our FDI is able to grow 40% year on year (yoy) by more than 40%," said Bahlil in a webinar entitled Can Indonesia Boost Investment Throuhg, Wednesday (8/2/2023).

Bahlil explained that the achievement of investment realization in 2022 was IDR 1,207.2 trillion or able to achieve the target set by President Joko Widodo.

"The interesting thing is that we were able to record from the IDR 1,207.2 trillion, we were able to record 54.2% of it from FDI and PMDN (domestic investment) it was 45.8%," he explained.

Furthermore, Bahlil added, the current investment destination in Indonesia is not only on the island of Java, but outside the island of Java has also increased significantly.

"It can be seen from the realization of investment in 2022 of 52.7% outside Java and in Java of 47.3%. This reflects that Indonesia is not building only Java centric but Indonesia wants to build a centrist Indonesia that is vast from Aceh to Papua," he concluded.

Investasi Asing Naik 40%, Bahlil: Kepercayaan kepada Indonesia Besar : Okezone Economy

Menteri Investasi Bahlil Lahadalia menyebut investasi asing yang masuk ke Indonesia mengalami pertumbuhan hingga 40 - hot issue - okezone economy

economy.okezone.com

 

[Indos]

Indonesia Central Bank holds its interest rate at 5.75 percent in Today meeting, showing confident in both inflation and currency strength/ foreign investors confident.

While US The Fed interest rate is at 4.75 percent and will likely keep being increased until 5.5 percent.

 

[Indos]

Sri Mulyani is in Japan

Meeting with Japan Finance Minister

Inside Nikkei Head Quarter

 

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Bank Indonesia Stands Pat as Economic Outlook Brightens​

Published: Feb. 16, 2023 at 2:31 a.m. ET

By Yi Wei Wong


Bank Indonesia held its seven-day reverse repo rate steady amid a brighter outlook for economic growth.

The central bank kept its benchmark interest rate unchanged at 5.75% on Thursday. The move had been widely expected, with six out of eight economists polled by The Wall Street Journal anticipating that it would stand pat, as Bank Indonesia Gov. Perry Warjiyo had signaled that the tightening cycle is coming to an end.

The central bank also maintained its overnight deposit facility at 5.00% and kept its lending facility at 6.50%.

The outlook for Indonesia's economic growth seems to be brighter this year, thanks to the strength of the country's exports and the impact of China having exited its strict zero-Covid policy, the central bank governor said in a press conference.

He added that the outlook for emerging-market currencies such as the rupiah has improved, mostly due to stronger foreign-capital inflows.

For 2023, Bank Indonesia maintained its outlook that the economy could grow between 4.5%-5.3%, but now says it expects full-year growth to reach the upper end of its projected range.

The central bank had previously guided for economic growth at the middle of the range.

Bank Indonesia Stands Pat as Economic Outlook Brightens

By Yi Wei Wong Bank Indonesia held its seven-day reverse repo rate steady amid a brighter outlook for economic growth. The central bank kept its benchmark...

www.marketwatch.com

 

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Rupiah Strengthens to 15,159 per US$ Despite BI Holds Interest Rate​

Story from Agustiyanti • 2 hours ago

The rupiah exchange rate closed up 0.3% to a level of Rp 15,159 per US dollar in the spot market this afternoon. The rupiah strengthened today even though Bank Indonesia decided to hold the benchmark interest rate.

The rupiah has indeed opened stronger in line with the opening of trading this morning after weakening again yesterday. The rupiah strengthened alongside several other Asian currencies except the Hong Kong dollar, Malaysian ringgit, Thai baht and South Korean won which fell between 0.01%-23%, while the Chinese yuan stagnated.

The rupiah strengthened in line with the market's positive sentiment towards risk assets. Several Asian stock indexes were seen gaining this afternoon, the Nikkei 225 gaining 0.71% with hang Seng ong Kong 0.84%, South Korea's Kospi 1.96% , and India's Nifty 50 0.31%.

"Positive sentiment may be triggered by expectations of improving global economic growth this year," said PT Sinarmas Futures analyst Ariston Tjendra in a note this morning, Thursday (16/2).

Ariston assessed that today's trading was also marked by market wait for the Bank Indonesia meeting. The central bank in a press conference this afternoon decided not to raise interest rates so that it remained at 5.75%.

BI Governor Perry Warjiyo also emphasized his statement that the current interest rate is sufficient to bring consumer inflation down to the target range of 2%-4% in the second half. Core inflation is also expected to be maintained below 4%.

"We believe that interest rates are adequate, in the sense that they don't need another hike, so BI's monetary policy stance is like that," Perry said.

BI's decision on the benchmark interest rate policy usually receives a response from market participants. Rising interest rates can usually encourage rupiah appreciation because it provides incentives for foreign funds to enter Indonesia. Meanwhile, lower interest rates are usually a disincentive for the rupiah.

The central bank also said that the domestic economic outlook this year is better than previously expected with the potential for growth above 5%. This is in line with the reopening of the Chinese economy which will boost exports and consumption which remains strong in line with the repeal of the PPKM policy.

Rupiah Menguat ke 15.159 per US$ Meski BI Setop Naikkan Suku Bunga - Makro Katadata.co.id

Rupiah menguat 0,3% ke level Rp 15.159 per dolar AS pada penutupan hari ini meski BI mempertahankan suku bunga acuannya.

katadata.co.id

 

[Indos]

2 minute read
February 20, 2023
8:32 PM GMT+7
Last Updated 4 hours ago

​

Indonesia plans to narrow 2024 fiscal deficit, sees higher GDP growth​

Reuters

JAKARTA, Feb 20 (Reuters) - Indonesia expects to bring its budget to a narrower fiscal deficit next year, even as its economic growth is predicted to accelerate, senior officials said on Monday, as President Joko Widodo aims to finish its remaining infrastructure projects.

Indonesia recorded a 464.3 trillion rupiah ($30.64 billion) fiscal deficit in 2022, or 2.38% of gross domestic product, based on unaudited data, the government said last month.

It expects a fiscal deficit of 2.84% of GDP in 2023 and, according to Finance Minister Sri Mulyani Indrawati, a 2024 state budget deficit in a range of 2.16% to 2.64% of GDP.

Addressing plans for the state budget spending for next year, Sri Mulyani said challenges for 2024 economic growth include maintaining confidence of consumers and keeping investment momentum strong, as well as anticipating export disruption over geopolitical issues.

"Next year, the budget will be maintained. On the one hand state revenues will grow with an ever-increasing tax ratio and budget spending will be maintained with discipline and in accordance to national agendas," she said.

Separately, Indonesia's economy in 2024 is projected to expand between 5.3% and 5.7%, Susiwijono Moegiarso, secretary of the coordinating ministry of economy, told Reuters on Monday.

Sources of that growth would be investments and household consumption, he said, which accounts for more than half of Indonesia's GDP.

Other sources included energy transition, construction of the new capital and downstreaming policies on natural resources, he added.

Southeast Asia's largest economy expanded 5.31% in 2022, official data showed earlier this month, its best annual growth rate since 2013.

Household consumption accelerated last year, supported by travel-related spending from the easing of pandemic restrictions.

The government has set a target of 5.3% for economic growth in 2023. It also gave an early projection for headline inflation in 2024 in the range of 1.5% to 3.5%, Susiwijono added.

($1 = 15,155. Rupiah)

Indonesia plans to narrow 2024 fiscal deficit, sees higher GDP growth

Indonesia expects to bring its budget to a narrower fiscal deficit next year, even as its economic growth is predicted to accelerate, senior officials said on Monday, as President Joko Widodo aims to finish its remaining infrastructure projects.

www.reuters.com