JAKARTA: Indonesian growth accelerated slightly in the first quarter on improving exports, official data showed Friday, but the outlook for the recovery in Southeast Asia’s top economy is subdued.
President Joko Widodo came to power in 2014 on a pledge to boost growth to seven percent but his government has struggled to lift rates in the country, which is rich in resources but has suffered from a slump in commodity prices.
The economy grew 5.01 percent year-on year in January-March, slightly up from the previous quarter’s 4.94 percent, according to the statistics agency. Exports surged 20.8 percent on-year, and grew 1.33 percent from the previous three months, said statistics agency chief Suhariyanto, who goes byone name.
The increase came on the back of a jump in the prices of some food exports, such as tea and shrimp, according to the statistics agency, while improving conditions in key destinations.
However, consultancy Capital Economics said falling prices of coal and palm oil—key exports for the nation—were weighing on growth.
Growth in Indonesia has been stuck at around five percent for the past three years, below the 5.8 percent average recorded over the past decade, according to the London-based consultancy.
