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Indonesia 2018 Economic Growth Hits Five-Year Record

Indonesia 2018 Economic Growth Hits 5-Year Record
During 2019, Southeast Asia largest economy' inflation rate ended at 2.72 percent and in monthly basis recorded at 0.34 percent, said the Statistic Indonesia on Thursday (01/02) - Photo: Privacy

JAKARTA (TheInsiderStories) – Amid a terrible global turmoil, Indonesia economy grew 5.17 percent in 2018, according to official statement, on Tuesday (05/02). It is the strongest growth since 2014, but slightly below state budget target and far below President Joko Widodo’ campaign vow.

In 2014, President Joko Widodo vowed to boost economic growth at 7 percent. But it has not reached at all during his ruling.

Head of Statistic Indonesia Suhariyanto considered the target is hard to achieve. Especially amid the global economic slowdown which is affected by US-China trade war and Federal Reserves rate hike. “The 7 percent target will be very hard,” he said.

He further explained, Indonesia 2018′ Gross Domestic Product (GDP) was Rp14,837 trillion (US$1,059 billion) and the GDP per capita was recorded at Rp56 million. Last year’ highest production growth was on other services field with 8.99 percent.

Meanwhile, the soaring growth of expenditure was achieved by non-profit institution consumption component that serves households, with 9.08 percent. Even so, Indonesia economic growth in the fourth quarter declined by 1.69 percent compared to the previous quarter.

Suhariyanto mentioned that the condition was caused by the seasonal effect of agriculture, forestry, and fisheries sectors production that fell by 21.41 percent. While the goods and services export expenditure component decreased by 2.22 percent.

Indonesia’s economic structure is still dominated by Java and Sumatera. The island of Java contributed more than half of Indonesia’ GDP. Sumatera and Kalimantan followed respectively by 21.58 percent and 8.2 percent.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com