Indonesia economy posts 5.17pc growth in 2018

Indonesia posted slightly stronger economic growth in 2018, data showed yesterday, but it still fell well short of President Joko Widodo’s 7 per cent target as elections draw closer. Southeast Asia’s biggest economy expanded 5.17pc onyear, ticking up from 5.10pc in 2017 and beating most analyst forecasts.

Domestic spending was a key driver, the statistics agency said, as the commodities-driven economy weathered rocky global demand. “This growth is quite an accomplishment...given uncertainty in the global economy and fluctuating commodity prices,” said statistics agency head Suhariyanto, who goes by one name.

However, Indonesia has reported a widening trade deficit in recent months while its manufacturing sector shrank in January, the first contraction in a year which underlined a slowdown in production. The latest data come a few months before Widodo seeks re-election with his economic record topping the agenda.