Indonesia's economic risk persists as growth slides further

Jakarta

INDONESIA'S growth slowed for a second straight quarter, underlining the challenge for President Joko Widodo as he struggles to revitalise an economy expanding at the weakest pace since 2009.

Gross domestic product (GDP) rose 4.67 per cent in the three months ended June 30 from a year earlier, from a revised 4.72 per cent the previous quarter, the statistics bureau said in Jakarta on Wednesday. That compares with the median estimate of 4.64 per cent in a Bloomberg survey of 21 economists.

Mr Widodo, known as Jokowi, remains well below his target of at least 7 per cent growth during his term. His government has turned to tweaks in taxes and regulations in an effort to revive the economy as state spending falls behind, domestic consumption and foreign investment remain weak, and commodities exports slump…