Business Data
Industry News - Booming Imports And Exports T o Boost Volumes At Port of T anjung Priok
Indones ia's economy expanded by 6 .5% year-on-year (y-o-y) in Q211, led by a healthy mix of private cons umption, net exports and inves tment. We remain optimis tic that the economy can continue to outperform the reg ion, and we s ee real GDP g rowth coming in at 5.8% in 20 12 (vers us cons ens us expectations of 6 .5%). Another g lobal reces s ion would des tabilis e, but not derail, Indones ia's s trong economic performance. From an expenditure point of view, private cons umption, which makes up 56% of the economy, continues to be the main g rowth driver, ris ing by 4 .6% y-o-y and contributing 2.6 percentag e points (pp) to headline real GDP in Q211. Low levels of cons umer debt, s trong employment g ains , booming terms of trade
and a rapidly s treng thening currency in real effective terms have helped to underpin consumer s pending , which s hould boos t import demand. The consumer story remains alive and well, and we expect g rowth to ris e to 5.0% in 2012. That said, a weakening exchang e rate and a deterioration in terms of trade will see private consumption growth underperform overall expans ion