BPS: The Economy Grows Along With Increasing Community Mobility And Purchasing Power

JAKARTA The Central Statistics Agency (BPS) stated that the Indonesian economy managed to record growth of 5.17 percent year on year (yoy) in the second quarter of 2023.

Deputy for Balance and Statistics Analysis of BPS Moh. Edy Mahmud said this achievement could not be separated from the increase in community mobility.

"In addition, the economy is growing because people's purchasing power is getting stronger," he said during a press conference in Jakarta on Monday, August 7.

According to Edy, the increasing mobility of the community is shown by the increasing number of passengers on transportation modes, namely trains 28, sea transportation 11 percent, and air transportation 30 percent.

"People's purchasing power increases are shown to be controlled inflation, car and motorcycle sales increase, electronic money transactions, and THR giving and 13th salary," he said.

Edy added that the increasingly aggressive demand for the economy was also supported by the supply side with the manufacturing Purchasing Managers' Index (PMI) which was increasingly expansionary. Then, manufacturing usage capacity increased to 74.8 percent in the second quarter of 2023 from the previous 72.3 percent in the first quarter of 2023.

Furthermore, the stronger economy was also supported by the response of government policies and the central bank. This can be seen from the increase in subsidy spending and social assistance during the first half of 2023.

Then, Bank Indonesia's decision in maintaining the benchmark interest rate was 5.75 percent in mid-July.

"This brings benefits with increasing foreign exchange reserves to US$137.5 billion at the end of the second quarter of 2023 compared to the same period the previous year of US$136.4 billion," he said.