empty
07.02.2022 04:43 PM
Indonesia's GDP grows promising good returns to investors

Indonesia's economy, contrary to many of the world's leading economies, showed strong growth in Q4 2021. The gains were made possible by a rebound in consumption rates immediately after the easing of travel restrictions, while higher commodity prices pushed exports to all-time highs.

Indonesia's GDP grows promising good returns to investors

This image is no longer relevant

The economy of one of Southeast Asia's leading countries grew at an annualized rate of 5.02% in the fourth quarter, according to data from the Indonesian Statistical Office. The figure looks especially good when compared to growth of 3.51% in the previous quarter. However, the growth came as no surprise to experts, who this time agreed with the government's estimate of GDP. Their median forecast fell slightly short of the final mark, amounting to 4.9% according to the preliminary survey.

In 2021, gross domestic product increased by 3.69%, compared to a decrease of 2.07% a year earlier. The economy recovered quickly from the COVID-19 pandemic.

The outlook for this year is still questionable due to the rising number of COVID-19 cases, potential stock market volatility due to global tightening of monetary stimulus, and Indonesia's emphasis on ultra-soft monetary and fiscal policies.

"Indonesia's economy rebounded strongly in the final quarter of last year, but the recovery is now entering a more difficult phase," analyst Gareth Leather said. "Omicron will act as a small obstacle in the first quarter. But a bigger drag will come from falling commodity prices and policy tightening."

Indonesia was hit by a severe wave of COVID-19 cases in July-August 2021, but travel restrictions were eased by the end of August as the number of cases decreased.

COVID-19 cases are now rising again in Indonesia due to the spread of the Omicron variant, with 36,057 new cases on Sunday being the highest since August. However, authorities have not reimposed strict anti-virus measures.

Household consumption, which accounts for more than half of Indonesia's GDP, rose by 3.6% in Q4, quickening from the 1% growth in the previous three months, signaling a positive economic impact of the early lifting of restrictions.

However, investment and government spending also grew in proportion to income in the fourth quarter, which the head of the Indonesian Statistics Authority, Margo Yuwono, attributed to the resumption of public and private sector activity, which had already been halted in the third quarter.

The export sector showed strong data. Thus, export growth also accelerated to 29.8% in Q4 from 29.2% in Q3 as prices for export products such as palm oil, coal and nickel remained high.

Josua Pardede, an economist with Bank Permata in Jakarta, said he expects 2022 GDP growth to recover further to between 4.8% to 5%, as the government maintains healthcare and social protection spending.

The Bank of Indonesia will start unwinding easy monetary policy with hikes in banks' reserve requirement ratio starting in March. The tightening is seen as a necessary preparation for the US rate hikes, which have in the past roiled Indonesian financial markets.

The government also plans to increase the value-added tax rate for most goods and services in April as part of its budget normalization policy.

The contribution of exports to growth may also be limited by the ban on coal shipments abroad in January and a newly implemented domestic sale requirement for some palm oil products.

However, these restrictions are unlikely to affect export volumes in general.

The main stock index Jakarta SE Composite Index is rising nicely in trading on Monday, jumping by more than 1%. The USD/IDR pair is usually quite volatile during the trading session, but after the release of the news it began to fall, still maintaining a general upward trend since the day of the announcement of the US Federal Reserve policy tightening.

Egor Danilov,
Especialista em análise na InstaForex
© 2007-2025
Selecionar intervalo de tempo
5
min
15
min
30
min
1
hora
4
horas
1
dia
1
s.
Ganhe com as variações das taxas das criptomoedas com a InstaForex.
Baixe o MetaTrader 4 e abra a sua primeira operação.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    PARTICIPE DO CONCURSO

Recommended Stories

Boeing ganha, Best Buy cai: Por que os investidores estão apostando em diferentes ativos

Best Buy cai após vendas para o ano inteiro e perspectiva de lucro encolherem Boeing ganha com CEO buscando aumentar a produção do 737 MAX Nikkei do Japão fica para

Thomas Frank 18:20 2025-05-30 UTC+2

Resumo de notícias do mercado dos EUA para 30 de maio

O S&P 500 iniciou a sessão em alta, mas rapidamente inverteu a tendência após autoridades confirmarem que as tarifas anteriormente suspensas permanecerão em vigor até a conclusão do processo

Ekaterina Kiseleva 15:52 2025-05-30 UTC+2

Boeing sobe, Best Buy cai enquanto investidores reequilibram seus portfólios em todos os setores

As ações da Best Buy caíram após a empresa reduzir suas previsões de vendas e lucros para o ano inteiro. A Boeing, por outro lado, avançou com o anúncio

14:38 2025-05-30 UTC+2

Tempestade no mercado de ações: Nvidia dispara, Dow cai, tribunal derruba tarifas de Trump

Ações da Nvidia sobem 5% após o fechamento; empresa divulga resultados trimestrais Dick's Sporting Goods sobe depois que os resultados do primeiro trimestre superaram as expectativas Tribunal de comércio

Thomas Frank 17:57 2025-05-29 UTC+2

Resumo de notícias do mercado dos EUA para 29 de maio

Markets reacted to a US Court of International Trade ruling that found the Trump administration's tariff actions exceeded its authority. The decision has introduced fresh uncertainty for the S&P

Ekaterina Kiseleva 15:33 2025-05-29 UTC+2

Da Nvidia à Xiaomi: o que está impulsionando o crescimento e a queda do mercado de ações hoje?

Aumento dos índices: Dow 1,78%, S&P 500 2,05%, Nasdaq 2,47% Confiança do consumidor se recupera em maio A PDD Holdings, controladora da Temu, cai com a queda da receita trimestral

Thomas Frank 18:16 2025-05-28 UTC+2

Quem não arrisca uma recessão não reduz a dívida nacional? Calendário do trader de 29 a 31 de maio

Estar no centro das atenções globais e "moldar o destino do planeta" - isso é o que Donald Trump mais gosta. Para ele, é essencial gerar manchetes constantemente

Svetlana Radchenko 18:16 2025-05-28 UTC+2

US Market News Digest for May 28

O índice S&P 500 ultrapassou o nível-chave de 5.908, sinalizando o fim de sua correção recente e abrindo a porta para novas altas. Um rompimento acima do nível de resistência

Ekaterina Kiseleva 18:00 2025-05-28 UTC+2

Nvidia na agenda: mercados aguardam relatório trimestral, dólar se aproxima da quinta queda mensal consecutiva

Wall Street se prepara para uma forte abertura após o fim de semana na segunda-feira Investidores se concentram nos lucros da Nvidia e nos discursos do Fed Dólar caminha para

Thomas Frank 17:58 2025-05-27 UTC+2
Não pode falar agora?
Faça sua pergunta no chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.