On the other hand, the investment / PMTB component increased (2023 = 4.40%; 2022 = 3.87%) supported by national strategic projects and the construction of a new capital. Another component supporting GDP growth is government spending which increased (2023 = 2.95%; 2022 = -4.47%) as the election momentum approaches and social assistance to mitigate the economic slowdown. Meanwhile, imports contracted (2023 = -1.65%; 2022 = 15.00%) as economic activity and domestic production slowed. Based on aggregate demand, the national economic growth rate declined in 2023 due to slowing household consumption growth (2023 = 4.82%; 2022 = 4.94%) and slowing exports (2023 = 1.32%; 2022 = 16, 23%) (Figure 9). The slowdown in domestic consumption is in line with slowing people’s purchasing power, which is reflected in the worsening sales growth of retail companies and the decline in the core inflation rate. Meanwhile, exports slow down due to slowing global economic activity, especially in Indonesia’s trading partner countries. Figure 9. Growth of Indonesian Aggregate Demand Components (%) Source: Central Statistics Agency, January 2024; The numbers in the green box are the contribution of these variables to Indonesia’s economic growth Q4-2023 4.94 4.82 2.55% 3.87 4.40 1.38% (4.47) 2.95 0.22% 15.00 (1.65) (0.34%) 16.23 1.32 0.32% 2021 2018 2022 2019 2023 2020 RT consumption Investment / PMTB Government Expenditures Import Export Sectorally, almost all business fields showed slow growth in 2023. One of the main causes was the slowdown in the manufacturing sector (2023 = 4.64%; 2022 = 4.89%) which contributed 18.67% to GDP. Apart from that, growth in the trade sector (2023 = 4.85 %; 2022 = 5.53%) and agriculture (2023 = 1.30 %; 2022 = 2.25%) was also in a slowing trend. However, several sectors recorded increased growth, namely the financial, construction and mining sectors. Meanwhile, spatially, economic growth was quite strong throughout Indonesia, especially in Kalimantan, supported by the new capital development project. Figure 10. Indonesian Economic Growth Based on Business Fields (%) Source: Central Statistics Agency, January 2023; The numbers in the green box are the contribution of these variables to Indonesia’s economic growth 2023 3.39 4.89 4.64 18.67% 4.63 5.53 4.85 12.94% 1.87 2.25 1.30 12.53% 4.0 4.38 6.12 10.52% 2.81 2.01 4.91 9.92% 3.24 19.87 13.96 5.89% 6.82 7.73 7.59 4.23% 1.56 1.93 4.77 4.16% 3.60 6.10 4.95 16.76% 15.14 13.83 4.94 4.38% 2021 2022 2023 Manufacture Trade and Reparations Agriculture and Fisheries Mining Construction Transportation and Warehouse Infocom Finance and Insurance Other Taxes-Subsidies PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 194
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