JAKARTA, Feb 5 (Reuters) - Indonesia's gross domestic

product expanded 6.2 percent in 2012, slowing from 6.5 percent

in 2011 as weak global demand slashed the country's exports.

2012 was the third straight year in which GDP grew by more

than 6 percent, as domestic demand in Southeast Asia's largest

economy remained strong.

The statistics bureau reported on Tuesday that on an annual

basis, growth in the last three months of 2012 was 6.1 percent,

compared with 6.2 in the third quarter.

KEY POINTS:

- Q4 GDP growth at 6.1 pct y/y vs poll forecast of 6.2 pct

- Q4 GDP growth at -1.45 pct q/q vs poll forecast of -1.3

pct

- 2012 GDP growth at 6.2 pct vs poll forecast and government

projection of 6.3 pct

- Transport, communications, retail, construction sectors

backed growth

For graphic of GDP, see:

http://link.reuters.com/bam85s

COMMENTS:

GUNDY CAHYADI, ECONOMIST, OCBC BANK, SINGAPORE

'Overall, it is still a decent figure, but we should take a

closer look at the details to get a better feel for the 2013

outlook.

'Now, the disconcerting fact from last week's trade data was

the sharp fall in import growth for December across all

components, including that of capital goods. Indonesia's strong

growth momentum in 2012 has been led by its robust investment

growth, and we have previously highlighted that it is crucial to

see this strong investment growth to be sustained in 2013.

'The moderation in imports of capital goods could be a

worrying trend if it were to sustain in the coming months, and

one would start to wonder if the recent IDR weakening has a been

a notable factor on this front. For now, we'd still maintain our

6.5 percent GDP growth estimate for 2013.'

MARKET REACTIONS:

The rupiah stood little changed at 9,689 per dollar

after the GDP data.

- Indonesia's benchmark stock index weakened

slightly after the data to trade 0.3 percent down by 0433 GMT.

Indonesia's statistics bureau website: http://www.bps.go.id

BACKGROUND:

- Indonesia expects its economy to expand between 6.6

percent and 6.8 percent this year, still driven by domestic

consumption but investment growth may fail to reach its target

due in part to concerns about infrastructure problems.

- Inflation in 2012 was a comfortable 4.32 percent as

government scrapped a plan to hike petrol price. January

inflation was 4.57 percent from a year ago, as adverse weather

condition caused distribution disruptions and pushing prices of

foodstuffs.

- Indonesia posted its first annual trade deficit in 2012,

at $1.63 billion, with reported a deficit for December of $150

million.

- The trade deficit has added to pressures on the rupiah , which was emerging Asia's weakest currency in 2012.

- The HSBC Markit purchasing managers' index for January

showed a contraction for manufacturing activity contracted for

the first time since May. The index was 49.7, compared with 50.7

in December and a record-high 51.5 in November.

- Bank Indonesia has maintained its benchmark rate at a

record low of 5.75 percent for 11 straight months to boost the

economy amid uncertain global conditions.

- Indonesia shoulders a heavy burden due to its fuel

subsidies, on which the government spent 211 trillion rupiah in

2012.

- Increased spending on imported fuel in 2012 added to the

currency account deficit, which the Bank Indonesia has estimated

was equivalent to 2.4 percent of GDP.

(Reporting by Andjarsari Paramaditha; Editing by Neil

Chatterjee)

Keywords: INDONESIA ECONOMY/GDP

(rieka.rahadiana@thomsonreuters.com)(+6221 3199 7170)(Reuters Messaging: rieka.rahadiana.thomsonreuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2013. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.