JAKARTA (TheInsiderStories) – Indonesia’s Gross Domestic Product (GDP) growth in the second quarter of 2017 reached 5.01 percent or lower compared to the same period last year which grew by 5.18 percent, contributed by slower household spending and government spending growth, The Central Bureau of Statistics (BPS) announced.
In terms of expenditure, all components have shown positive growth except government spending that contracted of 1.39 percent while it grew positive of 6.28 percent in the same period of the last year. Household spending as the main engine of the Indonesia’s GDP with total contribution 55.61 percent of GDP grew by 4.95 percent or slower compared to the second quarter of 2016 that grew by 5.35 percent.
“There are are indications that people is holding on spending because of factors of economy that are happening now and what will happen in the future,” said Suhariyanto, Head of BPS.
All of household spending component growth is slow in Q2-2017, both food and non-food. Growth of food consumption reached 5.26 percent or slightly slow than the same period of the last year that grew of 5.24 percent. While growth of non-food consumption also slow except consumption in hotel and restaurant and consumption in shoes and footwear due to Ramadhan.
Meanwhile, investment which become the second biggest contribution at around 31.36 percent of GDP grew by 5.35 percent or faster than the same period of the last year of 4.18 percent. Export also grew 3.36 percent or much better than its performance in the second quarter of 2016 that experienced negative growth by 2.73 percent.
While in terms of production, the biggest three contributor of GDP namely manufacture, agriculture, and trade sector is also slower in the second quarter of 2017. The manufacture is only grew 3.54 percent while the same period of the last year able to grew 4.63 percent. While the agriculture and trade sector is grew by 3.33 percent and 3.78 percent or slower compared to the second quarter of 2016 that grew 3.44 percent and 4.10 percent respectively. But the good news is the communication sector is remain the highest growth of 10.8 percent.
In term of spatial, growth still dominated by Java which contribute 58.65 percent and Sumatra which contribute 21.69 percent of total GDP. Java and Sumatra grew 5.41 percent and 4.09 percent respectively. The island of Sulawesi posted the highest growth rate at 6.49 percent. (YW/RF)