Indonesia’s economy grows faster than expected in first quarter
Indonesia posted an economic growth rate of 5.03% in the first quarter of 2023 thanks to improved consumption and increase public spending despite a slowdown in the global economy, according to Statistics Indonesia (BPS).
Jakarta (VNA) – Indonesia posted an economic growthrate of 5.03% in the first quarter of 2023 thanks to improved consumption andincrease public spending despite a slowdown in the global economy, according toStatistics Indonesia (BPS). Data released by BPS on May 5 show that the country’s GDPgrowth in the first quarter of this year is 0.02% higher than that of thefourth quarter of 2022, while a Reuters poll had expected the GDP to expand4.95%. Although analysts expect Indonesia's economic momentum tocool down as commodity prices fall and central banks around the world continueto maintain a tight monetary policy that affects global demand, Indonesia'spost-pandemic recovery is still underway thanks to a boom in commodity exports. Economists said that the Indonesia’s central bank – Bank Indonesia(BoI) tightened monetary policy including raising interest rates by a total of225 basis points from August 2022 to January 2023 to combat inflation, whichhad affected domestic demand. However, stable macroeconomic policies are helpingthe Indonesian economy to make positive changes. Statistics show that the inflation index in the most populouscountry in Southeast Asia has been well controlled. The BoI has paused monetarytightening measures in the last two months. Some economists expect the bank tokeep interest rates unchanged for the rest of the year. However, some analystsbelieve that to support the economic growth momentum, the BoI will likelyloosen monetary policy later this year. In the first quarter of 2023, household consumption growth,which accounts for more than half of the GDP in Indonesia, increased slightlyto 4.54% from the rate of 4.48% in the previous quarter. Meanwhile, governmentspending increased by 4% compared to the fourth quarter of 2022./.
Indonesia is following the lead of BRICS (an acronym for five leading economies: Brazil, Russia, India, China, and South Africa) in de-dollarisation and seeking ways to stop paying for global trade in the US dollar.
Indonesia recorded a 20.2% increase annually in foreign direct investment (FDI) in the first quarter (Q1) of this year, with the base metal industry the biggest recipient amid efforts to boost investment in processed minerals.
Bank Indonesia (BI) and the Bank of the Lao PDR (BOL) have signed a Memorandum of Understanding (MoU) to strengthen relationship between the two central banks.
With the 2023 ASEAN theme of “ASEAN Matters: Epicentre of Growth”, the coming 42nd ASEAN Summit reflects member countries’ wish and efforts to turn the bloc into a growth epicentre that leads cooperation and connectivity processes in the region and contributes to the common goal of peace, stability, and prosperity.
Vietnam’s pavilion notably displayed traditional crafts from the centuries-old lacquerware village of Ha Thai and Chu Dau ceramics. The atmosphere was further enriched by delegations wearing their countries’ traditional costumes, including the elegant ao dai and the graceful ao tu than of Vietnamese women.
The handover ceremony was held at the Malaysian Embassy headquarters in Mexico City on August 8, with the presence of heads of diplomatic missions from ASEAN member states in Mexico.
Total trade between Indonesia and New Zealand in the first half of 2025 reached 963.23 million USD, an increase of 21.56% compared to 792.39 million USD in the same period last year. Of this amount, Indonesia's exports to New Zealand totaled 374.89 million USD, while imports 588.35 million USD
Malaysia, as ASEAN 2025 Chair, marked the bloc’s 58th founding anniversary on August 8 with a vibrant celebration in Cyberjaya, blending an official ceremony with a colorful cultural festival.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
A corner of Jakarta, Indonesia. (Photo: AFP/VNA) 
