Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

MACROECONOMIC ANALYSIS SERIES: Indonesia Economic Outlook, Q2-2019

Growth momentum in the next quarter is likely to sustain, although some volatility is seen near term after the 2019 general elections. We maintain economic growth forecast for Q1 2019 at 5.2%, as we foresee stronger growth in household consumption. Household spending, which remains the primary driver of Indonesia’s economic growth, is projected to strengthen over the year due to several new policy measures, as long as there is no political dispute in the election result that could bring additional risk to the country.

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