Indonesia is facing a range of difficulties as the prices of key commodities like coal and palm oil have plummeted and the global economy falters on the back of the US-China escalating trade war.(Photo: AFP) Hanoi (VNA) - Indonesia on August 5 reported its lowest rate of quarterly growth in two years as Southeast Asia's biggest economy has been affected by US-China trade tensions.
The country’s economic growth weakened to 5.05 percent in the second quarter of 2019 as its exports and investment dropped. The figure was lower than a 5.27 percent expansion in the same period last year.
Indonesia is facing a range of difficulties as the prices of key commodities like coal and
palm oil have plummeted and the global economy falters on the back of the US-China escalating trade war.
The challenges facing Indonesia are not easy to overcome due to a significant slowdown in the global economy, said head of the statistics agency Suhariyanto.
This was also a new challenge to Indonesian President Joko Widodo, who was re-elected earlier this year largely on his infrastructure-driven bid to stimulate the economy.
Analysts said Widodo failed to hit a promised seven-percent target during his first term
and could struggle to lift the economy off its current level.
Last month, Indonesia cut interest rates for the first time in nearly two years in a bid to boost its economic growth.-VNA
VNA
