Indonesian GDP in the first quarter is growing less than expected

The Indonesian economy has grown more slowly than expected in the first quarter, as exports fell, according to official figures released Monday.

Southeast Asia's largest economy grew by 5.07 percent in the first three months of 2019 compared with the same period last year, said the Indonesian Bureau of Statistics. Analysts polled by Reuters were expecting a growth of 5.18%.

The slowdown is explained by the decline in the country's exports, which fell more than 2% in one quarter, the office said. The country is a major exporter of commodities such as palm oil and coal, whose prices have dropped this year.

Both private consumption and public spending increased slightly in constant prices compared to the previous year.

In a note published Monday, Econom Economics economist Gareth Leather asked if the official figures were reliable, the growth rate having been "strangely stable around 5% in recent years". Instead, Capital Economics uses its own measure of activity, which "is expected to weaken further in the coming quarters" due to high interest rates and moderate prices for the country's main exports.

In 2018, Indonesia's economic expansion exceeded badysts' expectations.

The central bank has also raised interest rates over the past year to reduce the country's current account deficit, which badysts say could dampen consumption.

On a quarterly basis, GDP fell by 0.53%, which is also lower than badysts' forecasts.