Indonesia’s economy has grown 5.27 percent year-on-year in the second quarter of 2018. It was slightly higher by 0.26 percent than the same period last year, according to the Central Bureau of Statistic.
“This 5.27 percent of economic growth is a delightful achievement; however, I need to highlight that the target of economic growth this year is 5.4 percent,” Head of Central Bureau of Statistic Suhariyanto noted here on Monday.
The number was also higher than the same period in 2016 and 2015, which was 5.21 percent and 4.74 percent, respectively.
According to the statistic bureau, the bullish growth in second quarter of 2018 was mainly contributed by the service sector, which grew 9.22 percent; corporate profits, which grew 8.89 percent; and transportation-warehousing, which grew 8.59 percent.
From its potential economic growth-making, non-oil and gas processing industry had the highest growth, at 0.84 percent; followed by retail sector and automobile reparation, each at 0.69 percent. Agriculture, forestry, and fisheries sectors contributed 0.64 percent; construction contributed to 0.55 percent; and transportation-warehousing to 0.35 percent.
“Non-oil and gas processing industry had been bullish, particularly in food and beverage, textile and apparel, as well as leather and latex production,” Suhariyanto noted.
From the expenditure side, consumption of nonprofit institutions serving households (NPISHs) had the highest contribution, at 8.71 percent; followed by goods and service export, at 7.7 percent; and gross fixed capital formation (GFCF), at 5.87 percent.
“NPISHs is strengthened by political campaigns and regional elections in 171 provinces and districts, as well as legislative elections and other nationwide political activities,” he noted.
The NPISHs alone contributed to 2.76 percent of potential economic growth, while GFCF contributed to 1.86 percent, and other components to 0.65 percent.
“The 5.27 percent of economic growth was driven by the holy month of Ramadan and Eid festivities, where household expenditure increased, especially in restaurants and hotels, food and beverage, other than restaurant, as well as transportation and communication,” Suhariyanto remarked.
Spatially, Indonesia’s economic structure in the second quarter of 2018 was dominated by Java and Sumatra Island, which contributed 58.61 percent and 21.54 percent to gross domestic product (GDP), respectively.
Kalimantan Island contributed 8.05 percent to GDP, followed by Maluku and Papua Island. Regardless of its contribution to GDP, the last two islands achieved the highest growth in this period.
Indonesia’s GDP in the second quarter of 2018 reached Rp3,683.9 trillion (around US$250 billion) and on the basis of constant 2010 prices, it was Rp2,603.7 trillion (around $0.18 billion).