BPS reports higher economic growth<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The economy grew at a higher rate in the second quarter of this
\nyear compared to the same period last year, driven by stronger
\ndomestic consumption, the Central Statistics Agency (BPS)
\nreported on Friday.<\/p>\n
This stronger growth raises hopes that the government's
\neconomic growth target of 4 percent for the year can be achieved,
\nit said.<\/p>\n
The BPS said the economy, as measured by gross domestic
\nproduct, expanded by 3.76 percent in the second quarter from the
\nsame period last year. This is faster than the first quarter
\nyear-on-year growth rate of 3.43 percent.<\/p>\n
The agency said household consumption and government
\nconsumption increased by 4.68 percent and 9.22 percent,
\nrespectively.<\/p>\n
BPS chief Sudarti Surbakti said was optimistic the economy
\nwould grow at a faster pace in the second half of the year.<\/p>\n
"Don't forget there will be some big public holidays and
\nfestivities in the fourth quarter of the year, which will boost
\nhousehold consumption," she told reporters.<\/p>\n
Some economists had said that growth in the second quarter
\nwould likely slow amid signs of declining domestic consumption,
\nas people's purchasing power weakened due to high unemployment
\nand the rising prices of utilities.<\/p>\n
This, combined with the recent Severe Acute Respiratory
\nSyndrome outbreak, prompted economists to slash this year's
\ngrowth forecast to about 3.5 percent. The recent terrorist
\nbombing at a Jakarta hotel only aggravated the situation.<\/p>\n
But government officials have remained confident that this
\nyear's economic growth target can be met. They have said that
\ndomestic consumption will remain high on the back of improving
\nmacroeconomic conditions and a recovery in the export sector.<\/p>\n
The rupiah has been appreciating rapidly since the beginning
\nof this year, which has been the main factor driving inflation to
\na 20-year low during the first half of 2003. This has in turn
\nprovided room for the central bank to continue cutting its
\nbenchmark interest rate to single-digit levels at about 9
\npercent, compared to more than 13 percent at the beginning of
\nthis year.<\/p>\n
Elsewhere, BPS said capital formation and exports increased
\nrespectively by 4.87 percent and 0.16 percent during the second
\nquarter.<\/p>\n
The agency said almost all sectors in the economy enjoyed
\nhigher growth in the period. The agricultural sector grew by 1.60
\npercent, the mining sector by 4.42 percent, manufacturing sector
\n2.78 percent, the electricity, gas and water sector 7.49 percent,
\nconstruction 5.23 percent, trade, hotel and restaurant 4.61
\npercent, transportation and communications 7.34 percent, finance
\n5.78 percent, and the services sector 2.19 percent.<\/p>\n
The Indonesian economy has been growing at a modest rate of 3
\npercent to 4 percent over the past couple of years. But
\neconomists have said that in order to create enough jobs for the
\nmillions of people who lost their jobs following the late 1990s
\neconomic crisis, the economy has to grow at between 6 percent and
\n7 percent per year.<\/p>\n
The government is targeting the economy to grow by 5 percent
\nnext year, and 6 percent starting in 2006 or 2007.<\/p>\n
Box<\/p>\n
Growth of GDP components<\/p>\n
Components Growth rate (%)<\/p>\n
Q2\/Q1 2003* Q2 03\/Q2 02 **<\/p>\n
Household consumption 1.79 4.68
\nGovt consumption 7.24 9.22
\nFixed capital formation 0.49 4.87
\nExports 1.46 0.16
\nImports -5.76 -2.19<\/p>\n
* Second quarter of 2003 compared to first quarter of 2003<\/p>\n
** Second quarter of 2003 compared to second quarter of 2002<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bps-reports-higher-economic-growth-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }