- Indonesia’s GDP grew 5.29% YoY – an expected slow down from Q1’s 5.61% YoY as net exports have turned negative for the first time since 2019 and consumer consumption continued to slow.
- Fortunately, the growth is carried by accelerating investment (6.87% YoY) alongside slowing government expenditure as the government seems to offload some its weight by channelling through SOE banks lending.
- Rising inflation compounded by a weakening Rupiah looks set to be the antagonist of the second half, expecting a further growth moderation, whilst keeping our full-year growth forecast at 5.1%.
