INDONESIA’S economy maintained steady growth in the first quarter of 2022 despite global tensions, official data showed today, as the nation reaped the benefits of soaring commodity prices and an easing of Covid-19 restrictions.

Indonesia was badly affected by the coronavirus pandemic, with its exports and tourism-reliant economy taking a massive hit in 2020 as GDP shrunk by 2.07% – its first recession since the 1997 Asian financial crisis. 

But Southeast Asia’s largest economy has picked up in recent months, and the Central Statistics Agency today reported a year-on-year expansion of 5.01% in January-March. 

“The high economic growth for the first quarter of 2022 is caused by the recovery of public activities,” head of the bureau Margo Yuwono said during a press conference. 

“Public mobility in the first quarter of 2022 has been really good.”

Exports showed an especially impressive growth of 16.22% in the first quarter of 2022 as prices for Indonesia’s palm oil, nickel and tin soared on the global market. 

Moody’s Analytics said Indonesia’s first-quarter showing exceeded their forecast. 

“The result indicates that Indonesia is on track to achieve the government’s full-year growth target of 4.5-5.3%,” it said in a note released today.

Last month, Indonesia dropped quarantine requirements for all travellers with a negative PCR test. 

It has also seen a tripling of foreign tourist arrivals between January and March this year compared with the same period last year. 

The country’s economy expanded 3.69% in 2021 as Covid-19 cases started to decline and export prices for key commodities like palm oil, coal and nickel rose significantly. 

But while Indonesia – the world’s top palm oil producer accounting for 35% of global trade – has reaped the benefits of the high prices in recent months, in April, it suspended exports in the face of domestic shortages. – AFP, May 9, 2022.