Low inflation opened room for BI cutting rate for first time since 2017 to support growth.
Trade (5.26% YoY) and information and communications sectors (9.03% YoY) lifted out the growth.
Government consumption growth should also be higher at around 7.5% YoY due to election preparation. However, downside risk in investment growth.
Late harvest in several places as mentioned by coordinating minister of economic, mainly due to distributional problems. It made supply of shallot, chili, vegetables and some other food products were limited, hence boost the price.
Currency movement is also favorable as Rupiah move within 13,800 – 14,300 range.
The negative import growth of China in December has made Indonesia export to experience -4.6% YoY growth and made the trade balance remained high at USD 1.1 bn.
Bank Indonesia (BI) will start its two-day board of governor meeting in Feb 20 and announced the result in Feb 21.
Industry wise, the main source of growth came from services sector especially trade and communication.
President Trump has promised to raise the tariff rate on USD 200 bn in Chinese imports to 25% from 10%.