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© Reuters. FILE PHOTO-A man walks past stacks of containers of Tanjung Priok port in Jakarta, Indonesia, February 3, 2023. REUTERS/Ajeng Dinar Ulfiana/File Photo JAKARTA (Reuters) – Indonesia’s annual economic growth fell slightly, but remained solid at 5.05% last year, as exports contracted amid falling commodity prices, data from the statistics bureau showed on Monday.

That growth rate was close to the government’s latest outlook of 5% and slightly below the 5.3% recorded in 2022, when economic activity was boosted by record exports amid a global commodity boom.

Last year, prices of Indonesia’s main commodities like palm oil, coal and nickel dropped, while demand from major trade partners also softened amid weakening global growth.

Southeast Asia’s largest economy was also feeling the pinch from the central bank’s rate hikes, totalling 250 basis points between August 2022 and October 2023, which hit domestic consumption.

In the final quarter of 2023, gross domestic product (GDP) grew 5.04% year-on-year, roughly in line with a forecast of 5% predicted by economists polled by Reuters.

The government is targeting 5.2% GDP growth this year, hoping campaign spending for the Feb. 14 presidential and legislative elections will boost domestic demand, with investment also potentially coming in after uncertainty surrounding the transition of power diminishes.

The statistics bureau is due to release the breakdown of GDP data later on Monday.

(This story has been corrected to change 2024 GDP growth target to 5.2%, not 5.3%, in paragraph 6)