Indonesia's economy expanded at the slowest pace in two years of 6.02 percent in the first three months, the National Statistic Bureau announced here on Monday, amid slower exports and government spending.
The figure is lower than the growth at the final quarter of last year of 6.11 percent.
Head of the bureau named only Suryamin told a press conference that the government spending decreased significantly in the first three months.
But the country's huge domestic consumption of 238 million people and growing investment have made up the decline.
The slow GDP may disturb Indonesian President Susilo Bambang Yudhoyono to implement the hike of subsidized fuel prices in coming months.
Indonesia's annual inflation accelerated at 5.7 percent in April after climbing at 5.9 percent in March, according to the bureau.
The figures are still above the central bank's upper target of this year of 5.5 percent.
This may lead the bank to keep its benchmark interest rate unchanged at record low of 5.75 percent on its board meeting on May 14.
The government expects the economy to expand by up to 6.5 percent this year.