Analysis: Harry Su, Bahana Securities
Helped by strong domestic demand and exports, Indonesia reported continued solid third-quarter gross domestic product (GDP) growth of 6.5 percent year-on-year, flat over the last two quarters and slightly lower than our and consensus estimates of 6.6 percent (exhibit 2). We note that growth across the board with exports, household consumption and fixed investment all showing good results.
The biggest contribution to GDP stemmed from exports, which expanded at the fastest pace since the first quarter of last year. While export support may weaken going forward on slowing global demand, Indonesia should remain as one of the best performing economies within the region next year, in our view. We note that Indonesia’s exposure to Europe is just 11 percent of total exports with most overseas demand coming from other Asian countries, where economic growth will remain resilient going forward. Read more