According to Bambang Brodjonegoro, current head of the Fiscal Agency (a department under the wings of Indonesia's Finance Ministry), Indonesia's economy will grow 6.0 percent in the second quarter of 2013. This growth rate is lower than originally forecast due to the impact of a global unstable environment. Economic growth in Q2-2013 is also likely to be below the Q1-2013 result of 6.02 percent. A few weeks ago, the government of Indonesia had already revised down its GDP forecast for 2013 from 6.8 percent to 6.3 percent.
Starting from 2012, Indonesia's quarterly GDP growth has been on a descending trend. In 2012, annual GDP growth stood at 6.23 percent, which meant that it had also not been able to meet its target of 6.3-6.5 percent growth that was originally set in the government's State Budget (APBN) as global turmoil resulted in weaker exports. Moreover, government spending was labeled as 'not optimal' in 2012.
The global unstable environment is expected to continue next year and has resulted in a downward revision of 2014's GDP growth to 6.4-6.5 percent.
Realized Economic Growth 2007-2013 (annual percentage change)
|Year|| Quarter I
||Quarter II||Quarter III||Quarter IV|
Source: Statistics Indonesia (BPS)