Indonesia’s economic growth slumped faster than expected in the fourth quarter of 2008 to 5.2 per cent from 6.4 per cent year on year.

Exports, in particular of commodities such as coal, rubber and palm oil, suffered from the slowing global economy. Early indicators from January 2009, such as falling automotive sales, suggest it will be a challenge for south-east Asia’s largest economy to meet the government’s newly cut economic growth target of 4 per cent to 4.5 per cent. The economy contracted 3.6 per cent in the fourth quarter, quarter on quarter, its biggest decline in two years.