Domestic demand spurs Indonesia economic growth

  • Indonesia's economy grew more than expected in the second quarter as domestic consumption countered a drop in demand for exports.

    Between April and June, the economy expanded by 6.4 percent from the previous year. Analysts had expected growth of 6.1 percent.

    According to economists, low interest rates, stable consumer price growth and rising consumer and business confidence had helped increase domestic demand.

    Domestic consumption makes up almost 60 percent of Indonesia's overall economy.