Research

What's Good & Bad From 3Q22 Indonesia GDP Print

market-avatar

Algo Research Team

Economics | Nov 07, 2022 | Views: 24

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • Export continued to be the main driver of growth
  • Consumption growth steadied but its losing momentum
  • Import of O&G increased substantially


Not a bad 3Q22 GDP number for Indonesia today, which stood at +5.7% YoY. As expected, this was mainly driven by higher export which grew +21.6% YoY as prices for the country's main commodity trades such as coal, CPO and base metal remained elevated throughout the quarter. Consequently, export contribution to GDP increased from 25.6% in 2Q22 to 27.7%, at an all time high. Should this trend remains in 4Q22, it would provide a decent cushion for the economy.


As for import, worth noting that import for O&G increased dramatically by +53% YoY in 3Q22 (vs. +12% in 2Q22) as oil and gas prices remained high while demand coming from transportation and lower domestic production played parts as well. 4Q22 should see higher print for O&G import as we believe that prices would project upwards due to array of positive catalysts for the commodity.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.