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Q1 growth exceeds 5% despite effects of dollar appreciation: Minister

Jakarta Globe - May 3, 2024

Anisa Fauziah, Jakarta – Despite major implications from the continued strengthening of the US dollar, Finance Minister Sri Mulyani Indrawati said on Friday that the Indonesian economy expanded by over 5 percent in the first quarter of the year.

Official data on first-quarter economic growth from the Central Statistics Agency has yet to be released.

Sri Mulyani attributed the robust growth to increased consumption and investment, as well as surpluses in international trade, amid ongoing global currency fluctuations.

"The Indonesian economy has demonstrated resilience and is projected to achieve growth of over 5 percent in the first quarter, surpassing the performance in the fourth quarter of 2023," Sri Mulyani said during a news conference in Jakarta.

She highlighted several policies, such as salary hikes for civil servants and annual bonuses, which have bolstered household spending.

Despite a 5.02 percent depreciation of the rupiah against the dollar year-to-date, Indonesia has maintained robust foreign exchange reserves totaling $140.4 billion as of late March.

Sri Mulyani also credited surpluses in international trade and effective monetary policies implemented by the central bank for mitigating the impact of the strong dollar.

The minister predicted that first-quarter growth would reach 5.17 percent.

Source: https://jakartaglobe.id/business/q1-growth-exceeds-5-despite-effects-of-dollar-appreciation-ministe