Indonesia's gross domestic product (GDP) grew 5.01% in the first quarter from a year earlier, beating market expectations and maintaining growth for the fourth consecutive quarter, according to data released by the Central Statistics Agency. Analysts say the improvement in several indicators shows the government's efforts to open the labor market, boost employment and improve infrastructure are taking effect.

Consumer consumption, which accounts for more than half of Indonesia's GROSS domestic product, rose 4.34 percent in the first quarter from a year earlier, up from 3.55 percent in the previous quarter, the data showed. Fixed asset investment increased by 4.09%; Exports increased by 16.22%.

Indonesia's export trade has grown rapidly since last year. According to statistics, Indonesia's top exports last year were coal, stainless steel and other products. Exports of electronics, footwear and clothing, furniture, plastics and leather products also grew rapidly. The Badingban Deep-water port, which is mainly used for automobile exports, was completed and put into operation in early 2021, promoting automobile and parts exports.

In addition, Indonesia's consumer confidence index, retail sales, motor vehicle sales, cement and power consumption index and other indicators have achieved growth, indicating a clear momentum of economic recovery.

Faja, an economist at the Center for Strategic and International Studies in Indonesia, believes that the COVID-19 pandemic once lowered global commodity demand and prices, leading to a decline in Indonesia's commodity exports. Starting from 2021, the global demand for commodities will gradually recover. Especially since this year, the rapid rise of commodity prices has driven the increase of Indonesia's export and economic growth.

In order to revive the economy, Indonesia supports bank loans to enterprises and carries out dynamic adjustment and optimization to ease the financial pressure on market entities. At the same time, we will implement preferential income tax rates and extend the period of tax incentives to reduce the tax burden on enterprises. Bank Of Indonesia Governor Wajiyo said that the Indonesian government has continued to promote prudent fiscal and monetary policies to create a stable and healthy macroeconomic environment.

Global inflation is also weighing on Indonesia's economy. Mandiri Bank Indonesia economist Faisal Rahman predicts inflation will be around 3.3 percent in 2022, up from 1.87 percent at the end of 2021. Eilman Faizi, a macroeconomic analyst at Bank Indonesia, said core inflation was still rising modestly and the central bank would adjust interest rates as conditions changed.