Indonesias Economy Grows 5.27 Percent in Q2: BPS
The Central Statistics Agency (BPS) reported that Indonesias 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,
Speaking to reporters at the BPS office on Monday, BPS Chairman Suhariyanto said: “The 5.27 percent of economic growth is a positive achievement; however, I need to stress that the target of economic growth this year is 5.4 percent.
The economic growth in the second quarter this year is also higher than in the same period in 2016 and 2015, which was 5.21 percent and 4.74 percent respectively.
The BPS also reported that the bullish growth in second quarter of 2018 was mainly contributed by the service sector, which grew 9.22 percent; corporate profits (8.89 percent), and transportation-warehousing (8.59 percent).
From its potential economic growth-making, non-oil and gas processing industry reported the highest growth at 0.84 percent; followed by retail sector and automobile reparation, each at 0.69 percent. In the meantime, 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 said.
From the expenditure side, consumption of non-profit institutions serving households (NPISHs) reported 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.
“The NPISHs is strengthened by political campaigns and regional elections in 171 provinces and districts, as well as legislative elections and other nationwide political activities,” Suhariyanto said, adding that 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 holidays, where household expenditure increased especially in restaurants and hotels, food and beverage, other than restaurant, as well as transportation and communication,” Suhariyanto said
Furthermore, Indonesia’s economic structure in the second quarter of 2018 was spatially dominated by the islands of Java and Sumatra, which contributed 58.61 percent and 21.54 percent to gross domestic product (GDP), respectively, while Kalimantan Island contributed 8.05 percent to GDP, followed by Maluku and Papua Island.
In the meantime, 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). (Humas BPS/ES) (/EP/Naster)
