Indonesia Hails ‘5% Growth Curse’ Over Despite Doubts

Indonesia’s finance minister said the economy’s strong start to the year is evidence the government’s strategies are working, but analysts warn that fading fiscal support and pressure on the rupiah will weigh on growth in the months ahead.

Stocks and the rupiah rose Wednesday, a day after data showed gross domestic product grew a faster-than-expected 5.6% in the first quarter, placing the country among Asia’s fastest-growing economies despite the war in the Middle East. Finance Minister Purbaya Yudhi Sadewa said late Tuesday that the robust figure shows that Indonesia has “clearly broken free from the 5% growth curse.”