Jakarta. The Indonesian economy grew 5.05 percent year-on-year (yoy) in the second quarter of 2024, according to the Central Statistics Agency (BPS).

“But this shows that our economy is expanding at a slower pace versus the same period last year, during which the country saw a 5.17 percent yoy growth,” Moh Edy Mahmud, a deputy at BPS, told the press on Monday.

The recent announcement also marked a slower rate of expansion compared to the 5.11 percent yoy growth seen in Q1 2024. BPS data revealed that this was the slowest Q2 growth since April-June 2021, during which the economy soared 7.08 percent yoy.

Indonesia posted a 3.79 percent quarter-to-quarter (q-to-q) growth after contracting 0.83 percent in Q1 2024. BPS revealed that the q-to-q expansion came as no surprise, as history had shown that second quarters tend to see an increase in economic activity after a contracted first quarter.  

BPS reported that the Indonesian economy expanded by 5.08 percent in the first half of 2024.

From a production standpoint, businesses in the Indonesian processing industry were Indonesia’s largest growth driver in the second quarter of this year, making up 0.79 percent of the 5.05 percent growth. The Eid celebrations, among others, had skyrocketed the food and beverage industry in Muslim-majority Indonesia to advance by 5.53 percent. Overseas demand for iron and steel also prompted an 18.07 percent growth in the country’s basic metal industry, according to Edy.

“Our chemical, pharmaceutical, and traditional medicine industries also rose  8.01 percent thanks to rising domestic and overseas demand,” Edy said.

Household consumption became the largest expenditure component contributor as it accounts for 2.62 percent of the Q2 2024 yoy expansion rate.

The Indonesian government is seeking to book a 5.2 percent growth for 2024.