- Indonesia’s GDP jumped by 7.07% YoY in Q2-2021, with a significant increase observed across all components. This was driven by a combination of Lebaran spending as well as the low base numbers of Q2-2020.
- However, it remains to be seen whether this strong recovery can remain sustainable, particularly amidst the current resurgence of cases and the reimposition of stricter mobility restrictions.
- With current restrictions putting pressure on domestic activity, exports are likely to lead the charge again in the coming months. Even here however, risks remain with regards to the Delta-driven surge of cases worldwide. Of particular concern is the risk of prolonged restrictions in commodity-hungry China.
