Economy grows 5.01% in first quarter

Economy grows 5.01% in first quarter


Jakarta — Indonesia recorded economic growth of 5.01 percent in the frist three months of the year, higher than the 4.92 percent and 4.71 percent seen in the same period of 2016 and 2015, the Central Statistics Agency (BPS) announced on Friday (05/05). Growth in first quarter was mainly supported by an increase in exports, which grew 8.04 percent and contributed 20.5 percent to gross domestic product (GDP). “Exports improved in the first quarter due to to increases in commodity prices and the global economy, coupled with better economic conditions experienced by Indonesia’s main trade partners,” BPS head Suhariyanto said on Friday (05/05). The government should continue to watch external risks and challenges, such as the protectionist trade policy of the United States that could affect global demand, even though Indonesia’s exports to the U.S. grew in the first quarter, he added. Meanwhile, the growth of private consumption, which is the biggest contributor to GDP with almost 57 percent, remained almost flat at 4.93 percent in the same period in 2016. Investment expanded 4.81 percent in the first three months, higher than the 4.2 percent seen in the same period last year. Government spending at 2.71 percent, lower than the 2.93 percent in the first quarter of 2016. The government targets GDP growth at 5.1 percent this year, higher than the 5.02 percent realized last year, but lower than the targeted 5.2 percent in 2016.

Source: thejakartapost