The growth of the Indonesian GDP in Q1 is at its lowest level for more than three quarters.

Official data released on Monday showed that Indonesia's economy has grown by 4.87% over the past year, its lowest growth rate in three years. Analysts had predicted a growth rate of 4.91%.

The growth rate between January and March was the lowest since the third quarter in 2021, down from the previous quarter's 5.02%.

Statistics Indonesia showed that the gross domestic product decreased by 0.98% on a quarter-to-quarter non-seasonally-adjusted basis.

Since the pandemic, Indonesia's economy has grown at a rate of 5%.

The President of Indonesia, Prabowo Subianto, took office in January and has promised to increase that figure to 8% over his five-year tenure. However, he faces challenges due to the slowing growth globally amid a trade conflict, a weaker domestic demand, and a tighter fiscal position.

In the coming months, U.S. tariffs could hit Southeast Asia's largest economy. Jakarta is currently discussing trade with Washington.

In the first quarter of 2025, spending by households, which accounts for over half of GDP, increased at a slower pace than in the previous five quarters. This is despite the higher spending that occurred during Ramadan, the month of fasting, and the Eid al-Fitr celebrations. This year, Ramadan was in March.

The investment growth rate was 2.12%, the lowest for two years. Government spending also contracted.

The net export contribution to the GDP increased due to a decline in imports.

Freeport McMoRan's Grasberg copper-and-gold mine, which is operated by Freeport McMoRan, saw its output fall by about 1% a year due to maintenance.

Agriculture grew by 10.5%, thanks to better rice and corn harvests than the previous year.

(source: Reuters)