Economic growth in Indonesia outstrips market expectations, sparks debate over data accuracy
Indonesia reported a GDP growth of 5.12% in the April-June period of 2022, a rise from the 4.87% recorded in the first quarter. The growth was attributed to the growth in domestic consumption and manufacturing investment. However, the Jakarta-based think tank, Centre for Economic and Law Studies (Celios), has questioned the accuracy of these official economic statistics.
Celios found the data to be "odd" and inconsistent with other economic indicators. The think tank has requested a technical diagnostic review of Indonesia's GDP calculation framework from the UN Statistics Division and Statistical Commission.
The rise in GDP was sustained by domestic consumption, which increased by 4.97% year on year. Household spending contributed to 54.25% of Indonesia's GDP in the second quarter. Manufacturing investment also grew significantly, with a 6.99% rise in the April-June period, marking the highest rise since the second quarter of 2021. The manufacturing industry grew by 5.68% year on year.
Celios' concern is not new. In 2022, the think tank also questioned the accuracy of the official GDP statistics for Q2 2022, citing similar inconsistencies. The request for review was made to the UN Statistics Division and Statistical Commission, international bodies responsible for statistical standards and practices.
The request for review by Celios underscores the importance of transparency and accuracy in the reporting of economic data, particularly GDP. The think tank aims to identify any issues or inconsistencies in Indonesia's GDP calculation framework to ensure the accuracy and reliability of the country's GDP statistics.
The data was released by Statistics Indonesia (BPS) on August 5, 2022. The BPS has not yet responded to Celios' request for review. The review, if conducted, could have significant implications for Indonesia's economic outlook and international standing.
[1] Source: The Centre for Economic and Law Studies (Celios) press release, August 6, 2022.
- The Centre for Economic and Law Studies (Celios) has expressed concerns about the accuracy of Indonesia's GDP statistics, declaring the data to be "odd" and inconsistent with other economic indicators.
- In light of the inconsistencies, Celios has requested a technical diagnostic review of Indonesia's GDP calculation framework from international bodies responsible for statistical standards and practices, including the UN Statistics Division and Statistical Commission.
