2018 Economic Growth Potentially Negative

By : Herry Barus And Aldo Bella Putra | Monday, March 26 2018 - 16:30 IWST

Bank Indonesia
Bank Indonesia

INDUSTRY.co.id - Jakarta - Economist Center of Reform on Economics (CORE) Mohammad Faisal reminded that Indonesia's economic growth in 2018 is potentially negative due to the deficit trade balance in the last three months from December 2017 to February 2018.

"The trade deficit for the third consecutive month is the first time since 2014. Previously we enjoyed a surplus," said Mohammad Faisal who is also the Executive Director of CORE through a written statement received in Jakarta on Sunday (25/3/2018).

He exposed deficit figures in February of Rp1.6 trillion, bringing the total deficit in the last three months since December 2017 to Rp15.1 trillion.

CORE also argues that it should be a serious concern of the government, because one of its impacts is the difficulty of achieving higher economic growth in 2018.

"Net exports that are driving economic growth during 2017 with 21 percent growth, potentially contributing negatively to economic growth in the first quarter of this year," Faisal added.

In addition, the government needs to understand that the trade deficit will also encourage widening the current account deficit.

According to Faisal, this is one of the factors driving the weakening of the rupiah, in addition to external factors such as the increase in interest rates of the central bank of the United States, the Fed.

In connection with this, BPS chief Suhariyanto told a news conference that the deficit in trade balance in February 2018 was triggered by oil and gas sector deficit of around Rp12 trillion, while the non-oil and gas trade surplus was Rp10.3 trillion.

"Deficit for three consecutive months, this should be our concern. This is certainly a warning for us all, January-February 2018, deficit of Rp12 trillion," said Suhariyanto in Jakarta.

Recorded in January 2018, the trade balance suffered a deficit of Rp10.4 trillion, or higher than February 2018. It is expected that in the next month Indonesia's trade balance could again pocket a surplus.

In terms of trade volume, the trade balance pocketed a surplus of 32.12 million tons, boosted by a non-oil and gas surplus of 32.57 million tons and a deficit in oil and gas trade balance of 0.46 million tons.

News Comment

Today's Industry

Grab (Ist)

Kamis, 11 Oktober 2018 - 12:36 WIB

Women Activists Criticize GRAB Indonesia on Victims Harassment Mediation

A number of women activists express their anger and regret at the GRAB Indonesia. The Malaysian applicator response to bring together between a driver partner who is allegedly harassed his passengers…

Panen Padi (Foto Dok Industry.co.id)

Senin, 08 Oktober 2018 - 03:30 WIB

Banten Lebak Farmers Harvest 55,622 Tons of Dry Grain

Lebak-Petani in Lebak Regency, Banten, during September 2018 harvests rice in an area of ​​9,347 hectares of paddy fields with a production of 55,622 tons of dried pungut (GKP) grain.

Bawang Merah (Ist)

Senin, 08 Oktober 2018 - 03:00 WIB

Kelompok Tani Sengingi Riau Panen Bawang Merah

Kuantan Singing - Beken Jaya Benai Farmer Group in Kuantan Singingi Regency, Riau Province harvesting shallots up to tens of tons managed on a quarter hectare of land, the results can improve…

Senin, 08 Oktober 2018 - 02:30 WIB

PT Pertamina Lubricants Wins Two TOP CSR 2018 Awards

Jakarta - PT Pertamina Lubricants managed to bring home two awards at the TOP CSR 2018 TOP CSR category on Lubricants Business, namely for the Corporate Social Responsibility (CSR) Enduro Student…

Listrik Ilustrasi

Senin, 08 Oktober 2018 - 02:00 WIB

Electrical System in Central Sulawesi is 75% Normal

Jakarta - Electricity, telecommunications, roads, airports and fuel supply (BBM) infrastructure have begun to recover in areas affected by the earthquake in Central Sulawesi. Assistance from…