Alhamdulillah, Indonesias Economy Grows Stronger than Expected: President Jokowi
President Joko Jokowi Widodo expressed his gratitude for the economic growth as of the third quarter of 2016 as released by the Central Statistics Agency (BPS) on Monday (7/11) that Indonesias economy has grown by 5.04 percent, as initially estimated at less than 5 percent.
“We estimate that it is under 5 percent, alhamdulillah it turned slightly above 5 percent,” President Jokowi said answering reporters after attending the TNI soldiers assembly, at the TNI Headquarters in Jalan Veteran, Central Jakarta, Monday (7/11) afternoon.
He also believes that in the fourth quarter of 2016, economic growth will be higher considering normally in the fourth quarter, the budget will increasingly start to spend.
“Yes, we expect that with a trigger from actual payment, the actual use of the budget would increase slightly. However, we must be aware that the global economy on the position which continues to fall. We should note it,” the President said.
The BPS Release
Previously, in a press conference in Jakarta, Monday (7/11), the Head of BPS Suhariyanto stated that the Indonesias economy measured by the amount of the Gross Domestic Product (GDP) on the basis of current prices in the third quarter of 2016 reached Rp3,216.8 trillion and on the basis of constant 2010 prices reached Rp2,428.7 trillion.
“Indonesias economy in the third quarter of 2016 to the third quarter of 2015 (y-on-y) grew by 5.02 percent, down compared to the second quarter of 2016 by 5.19 percent,” Suhariyanto said in a press conference at the BPS office, Jakarta, Monday (7/11) afternoon.
On the production side, according to Suhariyanto, the growth was driven by almost any business fields, in which the highest growth was achieved by the Information and Communication Business Fields amounted to 9.20 percent. On the expenditure side, the highest growth was achieved by the Household Non-Profit Institution (LNPRT) Consumption Expenditure Components of 6.65 percent followed by the Household Consumption Expenditure Component and Gross Fixed Capital Formation Component.
With the growth in the third quarter of 2016, according to the Head of BPS, Indonesia’s economy as of the third quarter of 2016 (c-to-c) grew by 5.04 percent.
On the production side, Suhariyanto said the growth was driven by all business fields except Mining and Quarrying which decreased by 0.24 percent. Meanwhile, on the expenditure side, the growth was mainly driven by the LNPRT Component which grew by 6.59 percent and the Household Consumption Expenditure Component by 5.01 percent.
According to the Head of BPS, Indonesia’s economic structure spatially in the third quarter of 2016 was dominated by a group of provinces in Java Island and Sumatra Island. “Java Island provides the largest contribution to the GDP, which amounted to 58.40 percent, followed by Sumatra Island and Kalimantan Island at 22.02 percent and 7.72 percent respectively,” he concluded. (FID/JAY/ES)(MUR/YM/Naster)