Faisal Maliki Baskoro & Muhamad Al Azhari, Jakarta – The Indonesian economy grew at a slower pace than expected in the first quarter, as exports contracted and investment tapered off, according to data provided by the Central Statistics Agency, or BPS.
Southeast Asia's biggest economy expanded at 5.07 percent in January-March, which was the slowest pace in a year.
Surveys by Reuters and Bloomberg estimated 5.18 percent and 5.2 percent growth, respectively, while the central bank penciled in 5.2 percent growth for the quarter.
BPS data shows exports contracted 2.08 percent after expanding by 4.33 percent in the fourth quarter last year. Investment growth meanwhile slowed to 5.03 percent from 6.01 percent.
BPS head Suhariyanto said weaker oil and gas prices on international markets and a global economic slowdown are among the factors affecting exports. Analysts said investment grew at a slower pace as investors adopted a wait-and-see approach prior to last month's simultaneous legislative and presidential elections, amid concern over the prospect of policy changes.
Meanwhile, household consumption, which makes up more than half of the nation's economy, was stagnant, BPS data showed.
Indonesia has been growing at around 5 percent since 2016 – well below the 7 percent targeted by the incumbent, President Joko "Jokowi" Widodo, when he assumed office in 2014.
The government predicts a growth rate of 5.3 percent this year, which if it can be achieved, would be the fastest since 2013.
Jokowi likely won the April 17 presidential election, according to quick-count data compiled by pollsters. The General Elections Commission (KPU) will only announce the official result after May 22.
Jokowi's sole contender, Prabowo Subianto, is still refusing to acknowledge the quick-count results and waiting for the official result. The retired Army general has repeatedly declared victory and one of his allies has threatened mass action if their side believes that there was massive cheating in the election.