China's Current Account Surplus in Q4 2018 by Strong Exports
Photo: World Bank

JAKARTA (TheInsiderStories) – Indonesia’s gross domestic product  (GDP) achievement is far from its target 5.2 per cent in the State Budget for 2017, Statistics Indonesia revealed on Monday (05/02).

Last year, Indonesia’s GDP only reached 5.07 per cent or slightly higher than previous year of 5.02 per cent. The growth was mainly driven by household consumption and investment.

Even though, the 2017 growth was the highest growth recorded by the country since 2014, where the country posted growth of 5.02 per cent. In the following year, the country’s GDP growth reached only 4.79 per cent, and then bounce back to 5.02 per cent in 2016.

(Infographic: The Insider Stories)

In the fourth quarter 2017, Indonesia posted GDP growth of 5.19 per cent year-on-year, the highest in the year, compared to 5.06 per cent in third quarter (yoy) and 5.01 per cent (yoy) in the second and first quarter respectively.

The head of Statistics Indonesia Kecuk Suharyanto said on sectoral basis, based on sectoral bases contribution, industry was the largest contributor to the growth at 20.16 per cent, followed by agriculture 13.14 per cent and trade 13.01 per cent.

As for industry sector, the highest growth was recorded by food and beverage sector, which recorded growth of 9.23 per cent in the fourth quarter, compared to 8.33 per cent in fourth quarter 2016. Processing industry booked growth of 4.27 per cent in the fourth quarter, little changed from fourth quarter last year at 4.26 per cent.

The coal and oil and gas sector however, fell by 0.32 per cent compared to positive growth of 2.84 per cent in the same quarter last year. Textile and clothing industry booked growth of 3.76 per cent in fourth quarter, after falling by 0.09 per cent a year earlier.

President Joko Widodo said earlier that the country’s economy should further improved to 5.3-5.4 per cent in 2018, therefore he called on business players to seize promising business opportunities.

The President sees potential factors that could lift Indonesia’s economy this year, including anticipated higher spending in regional areas, triggered by regional elections, as well as better-than-expected results in certain sectors, including tourism, lifestyle and information technology.

This year, Indonesia will hold 171 regional elections – 17 to elect governors, 115 to elect Regency Heads and 39 to elect Municipality Heads.

Data Source : Statistics Indonesia