Indonesia’s economic growth unexpectedly accelerated as rising investments countered declining exports, reducing pressure for monetary easing as the nation withstands Europe’s sovereign-debt crisis. Gross domestic product rose 6.37% in the three months ended June 30 from a year earlier, the Central Bureau of Statistics reported yesterday.
That compares with a revised 6.32% gain for the first quarter and the 6.1% median estimate of 24 economists in a Bloomberg poll. Indonesia’s growth is the fastest among Group of 20 nations after China, even as the faltering global recovery hurt its currency. Investments accounted for 32.9% of GDP last quarter, the highest share since the Asian financial crisis, underscoring president Susilo Bambang Yudhoyono’s success in boosting confidence more than a decade after the nation sought an International Monetary Fund bailout. Bank Indonesia governor Darmin Nasution and his board will keep the benchmark reference rate at a record low 5.75% on 9 August, all but one of 26 analysts surveyed by Bloomberg forecast.