JAKARTA (TheInsiderStories) – Indonesia’s economic growth lowered to 5.17 percent in third quarter (3Q) of 2018 compared to previous month at 5.27 percent, said Statistic Indonesia on Monday (05/11). But higher compared to same period of last year at 5.15 percent.
Head of Statistic Indonesia Suhariyanto revealed that the realization of economic growth was held back by the current account deficit. Actually Indonesia’s exports recorded experiencing growth but unfortunately has not been able to compensate the increase of imports in the 3Q.
“This quarter (3Q) export rose 8.33 percent but import growth has increased by 23.71 percent and resulting in a deficit,” he said
Suhariyanto added, the growth in household consumption, which accounts for more half of Indonesia’s GDP, also weakened in the third quarter.
Previously, Indonesian government decided not to revise the 2018 State budget although some assumption including Rupiah against US Dollar and oil price are too far from the realization.
Finance Minister Sri Mulyani Indrawati rated the the posture of the 2018 state budget are quite stable and does not experience a big deviation in state revenue and state expenditure. The deficit is smaller than planned at 2.12 per cent of gross domestic product (GDP) or equivalent to Rp314 trillion (US$20.93 billion).
Meanwhile, Minister and Head of National Development Planning Agency Bambang Brodjonegoro predicted Indonesia’s economic growth during 2020-2024 averages 5.7 percent. In that time frame, he said, the lowest economic growth at 5.4 percent and the highest at 6 percent.
In detailed, he explained the level of economic growth targets could be achieved if the household consumption grow in the ranges 5.21 percent to 5.37 percent. Then, investment rise at 7.45 percent to 8.25 percent, exports 6.75 percent to 7.6 percent, imports 7.56 percent to 8 percent, and government spending is 3.28 percent to 4.1 percent.
Furthermore, he said, one of the main targets in that is Indonesia’s income per capitaequal to the upper middle income countries in 2025. Then, the unemployment rate and the number of poor people is not more than 5 percent.
Currently the level of poverty in Indonesia based on Statistic Indonesia data is 9.82 percent as March of 2018. Meanwhile, the unemployment rate reached 5.13 percent and the current ratio was 0.389.
In the 2019 Government Work Plan, the target poverty rate is set around 8.5 percent to 9.5 percent, the unemployment rate is 4.8 percent to 5.2 percent, and the Gini ratio is 0.38-0.39.
Meanwhile, the projected indicative development target of 2020-2024 for poverty rates ranges from 5 percent to 5.7 percent, unemployment from 4 percent to 4.6 percent, and the Gini ratio is 0.371 to 0.373. Brodjonegoro assured, the projection was realistic to achieve at the end of the next period of government.
“The important thing is that the policy must be correct. How to fight poverty, how to protect vulnerable vulnerable groups. So there must be a policy attempt to achieve the target,” he said.
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