Indonesias Economy Grows by 5.07% in Q1 2019
Indonesia’s economy has grown 5.07% year-on-year in the first quarter of 2019, compared to the same period last year, according to the Central Statistics Agency (BPS).
“The growth was driven by all business fields. The highest growth was achieved by corporate services at 10.36%; followed by other service business fields at 9.99%; information and communication at 9.03%; and water supply, garbage, waste, and recycling management at 8.95%,” Head of the Central Statistics Agency (BPS) Suhariyanto said during a press conference at the Central BPS office, Jakarta, Monday (6/5).
Based on the sources of Indonesias economic growth in q1 of 2019 (year-on-year), according to Suhariyanto, the highest growth is derived from the processing industry business at 0.83%; followed by big-retail trade, car-motorcycle repair at 0.70%; construction at 0.59%; information and communication at 0.47%; and other business at 2.48%.
He explained that Indonesia’s economic growth in q1 of 2019 compared to q4 of 2018 (q on q) was influenced by seasonal factors in agriculture, forestry, and fisheries business (14.10% growth).
Positive growth also occurred in the financial and insurance services at 3.33%; information and communication at 2.77%; real estate at 2.52%; company services at 2.44%; and several other businesses. However, the aforementioned business sector growth is inadequate to resist the contraction in Indonesia’s economic growth in the q1 of 2019 (0.52%).
“This is caused by growth contraction in some business fields that have major contributions such as: construction; mining and excavation; transportation and warehousing; and government administration, defense, and mandatory social security,” Suhariyanto explained.
According to him, Indonesia’s economic growth in q1 of 2019 compared to q1 of 2018 (y-on-y) occurred in almost all components. The highest growth was achieved by household non-profit institution consumption expenditure (PK-LNPRT) component at 16.93%; followed by government consumption expenditure (PK-P) component at 5.2%; and the gross fixed capital formation (PMTB) component at 5.03%.
Based on the sources of Indonesia’s economic growth in q1 of 2019 (y-on-y), he added, the highest source of growth was derived from the household consumption expenditure (PK-RT) component at 2.75%, followed by the PMTB component at 1.65%. Meanwhile, the source of economic growth from other components was at 0.67%.
Suhariyanto also explained that Indonesia’s economy in the q1 of 2019 against q4 of 2018 (q-to-q) was contracted by 0.52%. This is due to the negative growth that occurs in almost all components of GDP expenditure, excluding the PK-LNPRT and PK-RT components which grew by 6.58% and 0.04% respectively.
He said that the structure of the economy of Indonesia in the q1 of 2019 was still dominated by the group of provinces located in Java Island which contributed 59.03% to GDP; followed by Sumatra Island at 21.36%, Kalimantan Island at 8.26%; Sulawesi Island at 6.14%; Bali and Nusa Tenggara Islands at 3.02%; and Maluku and Papua Islands at 2.19%. (BPS PR/ES)
Translated by : Fairuzzamani Inayatillah
Edited by : Ridwan Ibadurrohman, Mia M. Bonaedy