Sectors that rely on export demand are still contracting, especially in the second quarter of 2023, especially when compared to the pre-pandemic situation. The sector includes textiles and footwear.
Typically, the Ramadan month and Idul Fitri week is a period of elevated inflation as people consume and travel more than usual amid the festivities. This year, however, inflationary pressures were remarkably low. According to the latest data of Statistics Indonesia (BPS), inflation reached 0.33 percent month-on-month in April 2023.
The Indonesia Finance Ministry expects second-quarter gross domestic product growth to reach 5 per cent year-on-year (yoy), the same figure as the first quarter, as high consumption and net export sustain growth in the face of recent economic challenges.
Indonesian markets are back open after the week-long Idul Fitri holiday. And, it was not the greatest opening, with Indonesian stocks, bonds, and the rupiah under heavy pressure. Moreover, Indonesian inflation accelerated quite rapidly in April 2022.
With the Ramadan month just having started, it is important to take a look at food prices in Indonesia. The Ramadan-Idul Fitri period is typically a period when prices rise amid a significant increase in demand.