External Sentiment Becomes Contributors to Indonesia's Economic Growth 2017

INDUSTRY.co.id - Jakarta, Central Bureau of Statistics (BPS) noted that the Indonesian economy in 2017 grew by 5.07 percent, below the target set by the government at 5.2 percent. Even so there is a growth increase compared to 2016 which reached 5.03 percent.

In absolute terms, the Indonesian economy of 2017 measured by Gross Domestic Product (GDP) at current prices reaches Rp13,588.8 trillion and GDP per capita reaches Rp51.89 million or US $ 3,876.8.

This means that the Indonesian economy in 2017 recorded growth of 5.07 percent, showing a slight increase compared to the achievements in 2016 of 5.03 percent.

In terms of production, the highest growth was achieved by the Information and Communication Business Field at 9.81 percent.

"In terms of the highest growth expenditure achieved by the Export Components of Goods and Services by 9.09 percent," said Head of BPS Suhariyanto some time ago.

The achievement of economic growth of 5.07% said Suhariyanto driven by positive external occurred in the fourth quarter of 2017.

Including China and the United States economic recovery, this accounts for 27 percent of Indonesia’s export share.

Not only that, the rise in commodity prices in the fourth quarter also boosted the value of Indonesian exports such as world oil prices which rose 23.61 percent on an annual basis and mining commodities such as aluminum, zinc and copper.

The sentiment affected net exports, which increased 9.09 percent in 2017.

"This is due to improved economic performance of export destination countries and rising commodity prices, and this is the most significant component of GDP," he said.

Meanwhile, the value of Gross Fixed Capital (PMTB) in 2017 also improved and grew 6.15 percent.

This is because real investment realization in the fourth quarter also rose 12.7 percent on an annual basis to Rp179.6 percent.

Similarly, in terms of absorption of government spending recorded jumped 39.94 percent in the fourth quarter compared to the third quarter due to salary and benefits expenditures, mainly teachers and educators.

According to him, this mirror that the management of government spending is still not good, where all the absorption of spending done at the end of the year.

"But this government consumption is improving, we see all components of this economic growth look positive," he explained.

When viewed from the component form, the household consumption still holds the largest share of GDP in 2017 that is 56.13 percent, followed by PMTB 32.16 percent, and exports of 20.37 percent.

While in the fourth quarter of 2017, when compared to the fourth quarter-2016 (y-on-y) Indonesia's economy grew 5.19 percent.

In terms of production, the highest growth was achieved by the Company's Business Field of 9.25 percent.

On the expenditure side, the highest growth was achieved by the Goods and Services Export Component at 8.50 percent.

Indonesia's economy in quarter IV-2017 when compared to the previous quarter (q-to-q) contracted by 1.70 percent.

In terms of production, this is due to seasonal effects on Agricultural, Forestry and Fishery Fields experiencing a contraction of 21.60 percent.

"From the expenditure side is caused by the decrease of net exports," he said.