Investors shouldn't be fooled by a slight pick-up in Southeast Asia's largest economy in the second quarter, analysts told CNBC, as the economy is likely to underperform for some time to come.
According to a poll of Reuters' analysts, data to be released on Tuesday will show Indonesia's economy expanding 5.3 percent on an annual basis, eking up slightly from the first quarter's 5.2 percent but still markedly below the 6-7 percent growth rates enjoyed in recent years.
Wellian Wiranto, economist at Singapore's OCBC bank, expects the gross domestic product (GDP) print to come in above the Reuters' poll at 5.4 percent.
"Last quarter's result was especially bad because of fairly poor trade numbers, including a large trade deficit. Although we still see a trade deficit in Q2, on a relative scale we'll see that trimmed down a bit and this is why we'll see Q2 numbers slightly higher than Q1," he said.
However, Wiranto added that investors shouldn't expect a sharp uptick in Indonesian growth anytime soon.
"The continued lack of investment is one of the reasons Indonesia continues to perform below its potential GDP rate of between 6 and 7 percent. The numbers we are seeing at the moment are still way below what Indonesia can achieve," he said.
The central bank has been forced to hike rates five times over the past year to prop up its flailing currency. A controversial mineral exports ban introduced in January has also proven a headwind to investment and growth.
"We're not talking about a recession but the performance will remain sub-par," said OCBC's Wiranto.
"I think the earliest we will see growth recover to full potential will be in the second half of 2015, as we start to see sentiment improve after the elections, and a steady rise in consumption growth," he added.