Despite the challenging global economic climate, the outlook in ASEAN remains positive. With economic optimism and over 5.2% growth in 2022, Indonesia is now the strongest economy within ASEAN.
The Central Statistics Agency (BPS) reported that Indonesia’s trade balance surplus amounted to USD 4.53 billion in March 2022 and USD 9.33 billion in the first quarter of 2022, compared to USD 5.52 billion in the same period the previous. This positive trade balance has run for 23 months in a row.
Boasting political stability, easy investment transformation, and a wealth of rare earth & mineral resources, Indonesia has become a highly attractive investment destination. According to the Ministry of Investment (BKPM), FDI realisation had reached IDR 216.7 trillion (USD 15 billion) in Q3 2021. In Q1 2022, FDI in Indonesia (excluding investment in the banking, oil & gas sectors) surged 31.8% year on year to a record high, reaching IDR 147.2 trillion (USD 10.22 billion), accelerating sharply from a 10.1% growth in Q4 2021, amid efforts by the government to ease business and licensing rules as the COVID-19 situation continues to improve. Base metal, transportation, warehousing, telecommunication and utilities were among the top sectors taking beneficiaries. In total, Indonesia posted a record peak of IDR 282.4 trillion of foreign and domestic investment during Q1 2022, up 28.5% from last year.
Indonesia has plenty of opportunities to offer, especially with confidence rising for 2023, growth is estimated to be between 5.4% and 5.7%.
The Asian Development Bank (ADB)'s outlook for 2022/2023 is even more optimistic. GDP growth in developing Asian markets is expected to stay strong, at 5.2% in 2022 and 5.4% in 2023. The pace of the recovery varies across subregions but, in general, regional growth is being supported by a robust recovery in domestic demand. Economies are continuing to catch up with their pre-pandemic trend, particularly in South Asia. Here, growth will remain strong in 2022, forecasted at 7.0%, accelerating to 7.4% in 2023. East Asia almost converged with its pre-pandemic trends in 2021 and growth rates are expected to normalize to 4.7% in 2022 and 4.5% in 2023.
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For more information, please contact your Tricor Indonesia representative.
