Indonesia`s economy grows 5.27 percent in second quarter of 2018

13 , 2018 | Source: Antara News

Indonesia`s economy has grown 5.27 percent year-on-year in the second quarter of 2018, slightly higher by 0.26 percent than the same period last year, according to the Central Bureau of Statistic.

"This 5.27 percent of economic growth is a delightful achievement; however, I need to highlight that the target of economic growth this year is 5.4 percent," Head of Central Bureau of Statistic Suhariyanto noted here on Monday.

The number was also higher than the same period in 2016 and 2015, which was 5.21 percent and 4.74 percent, respectively.

According to the statistic bureau, the bullish growth in second quarter of 2018 was mainly contributed by the service sector, which grew 9.22 percent; corporate profits, which grew 8.89 percent; and transportation-warehousing, which grew 8.59 percent.

From its potential economic growth-making, non-oil and gas processing industry had the highest growth, at 0.84 percent; followed by retail sector and automobile reparation, each at 0.69 percent. Agriculture, forestry, and fisheries sectors contributed 0.64 percent; construction contributed to 0.55 percent; and transportation-warehousing to 0.35 percent.

"Non-oil and gas processing industry had been bullish, particularly in food and beverage, textile and apparel, as well as leather and latex production," Suhariyanto noted.

From the expenditure side, consumption of nonprofit institutions serving households (NPISHs) had the highest contribution, at 8.71 percent; followed by goods and service export, at 7.7 percent; and gross fixed capital formation (GFCF), at 5.87 percent.

"NPISHs is strengthened by political campaigns and regional elections in 171 provinces and districts, as well as legislative elections and other nationwide political activities," he noted.

The NPISHs alone contributed to 2.76 percent of potential economic growth, while GFCF contributed to 1.86 percent, and other components to 0.65 percent.

"The 5.27 percent of economic growth was driven by the holy month of Ramadan and Eid festivities, where household expenditure increased, especially in restaurants and hotels, food and beverage, other than restaurant, as well as transportation and communication," Suhariyanto remarked.

Spatially, Indonesia`s economic structure in the second quarter of 2018 was dominated by Java and Sumatra Island, which contributed 58.61 percent and 21.54 percent to gross domestic product (GDP), respectively.

Kalimantan Island contributed 8.05 percent to GDP, followed by Maluku and Papua Island. Regardless of its contribution to GDP, the last two islands achieved the highest growth in this period.

Indonesia`s GDP in the second quarter of 2018 reached Rp3,683.9 trillion (around US$250 billion) and on the basis of constant 2010 prices, it was Rp2,603.7 trillion (around $0.18 billion).

 

Indonesia`s economic growth reached a five-year high of 5.17 percent in 2018, mostly fueled by household consumption, investment, and government spending, according to the Central Statistics Agency (BPS).
tate-owned train maker PT Industri Kereta Api (Inka) sent on Sunday 15 train cars to Bangladesh, a portion of 250 train cars to be exported to the country this year after the company exported 200 train cars to the country in 2006 and 2016.
US companies perceive Indonesia as a potential regional hub for conducting their business and trade, Indonesia`s Trade Minister Enggartiasto Lukita stated.
Indonesia has eyed export of liquefied natural gas (LNG) to Cambodia to meet the demand for power plants in the country, Vice President Jusuf Kalla said here on Wednesday.
Indonesian Vice President Jusuf Kalla and Cambodian Prime Minister Hun Sen held bilateral talks at the Lotus Blanc Resort, Siem Reap, Cambodia, on Wednesday morning, to discuss the development of cooperation between both nations.
Economic diplomacy has become one of the priorities of the Indonesian foreign policy by boosting the country′s economic and trade cooperation with African, Central, and South American countries, Foreign Minister Retno L. P. Marsudi stated.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu