Indonesia's GDP growth unexpectedly accelerated to 5.12% in Q2, fueled by exports and investment, surpassing expectations of 4.8%. Despite positive growth figures, economists highlight concerns over weak loan growth and mass job losses in manufacturing. Gross fixed capital formation rose by 6.99%, indicative of infrastructure and machinery spending. While some analysts express optimism about continued growth due to government stimulus and resilient agricultural output, others criticize the reliability of GDP data and doubt sustainability of investment in the second half of the year.
"Gross domestic product in the three months through June rose 5.12% from a year ago, the nation's statistics office announced on Tuesday."
"I doubt if the investment growth will be sustained in the second half of the year," said Ahmad Mikail Zaini, chief economist at PT Sucor Sekuritas.
"Third-quarter figures could continue this improvement," said Bank Danamon Indonesia economist Hosianna Evalita Situmorang, citing supportive monetary policy.
"We don't have much faith in the data," Capital Economics said in a report after the announcement, expressing concerns about Indonesia's GDP reliability.
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