Aditya Suharmoko, The Jakarta Post, Jakarta<\/p>\n
Indonesia\u2019s third quarter economy grew at the slowest speed in six quarters as slumping commodity prices cut export revenues and the global economic slowdown reduced demand for Indonesian products.<\/p>\n
Between July and September, Southeast Asia\u2019s largest economy, grew by 6.1 percent against the same period in 2007, the Central Statistics Agency (BPS) announced Monday.<\/p>\n
\u201cIt can be said that there was no increase in exports (in the third quarter of 2008 from the previous three months). But the economic growth of other countries is slowing as well,\u201d BPS chairman Rusman Heriawan.<\/p>\n
Exports were declining as major importers cut demand in line with with the global economic downturn, the agency said.<\/p>\n
Between July and September, the economy was supported by private consumption (57.8 percent), investment (27.5 percent), and government spending (8.5 percent), while net export and imports contributed almost nothing.<\/p>\n
Contributors of Indonesia\u2019s GDP (in percentage)
\nItems
\nQ3 2007
\n\t\tQ3 2008
\nPrivate consumption
\n 61.7
\n57.8Government spending
\n7.8
\n 8.5
\nInvestment
\n24.7
\n 27.5Inventory change
\n\t0.8
\n 0.5Statistical discrepancy
\n 1.7
\n .8Exports
\n29.0
\n 28.6
\nSubtracted by imports
\n25.7
\n28.7
\nSource: Central Statistics Agency (BPS)<\/p>\n
\u201cSeptember represented the peak of economic activities as people\u2019s spending rose due to an increase in income,\u201d Rusman said.<\/p>\n
In September, private consumption rose as people spent more money during the Islamic fasting month of Ramadan and ahead of the Islamic Idul Fitri holiday, which took place on Oct. 1.<\/p>\n
The transportation and communications sector contributed to the highest growth at 17.1 percent during the third quarter, compared to the same period last year, while the mining sector had the lowest growth at 1.6 percent.<\/p>\n
In the first nine months of 2008, Indonesia\u2019s economy expanded by 6.3 percent, with the gross domestic product valued at Rp 3,705.3 trillion (US$310.72 billion).<\/p>\n
Rusman said Indonesia\u2019s GDP would likely exceed Rp 5,000 trillion by the end of the year.<\/p>\n
It is estimated that per capita income will reach $2,250 per person per year by the end of the year based on the assumption that GDP would reach Rp 5,000 trillion, with a population of 228.5 million people and an average currency exchange rate of Rp 9,700 per dollar, according to Rusman.<\/p>\n
Rusman believed the economy would slow further in the last quarter of 2008, but was still capable of achieving full-year growth of slightly above 6 percent.<\/p>\n
\u201cAlthough the economy is likely to slow to below 6 percent in the fourth quarter (of 2008), overall economic growth will still be above 6 percent for the whole year,\u201d he said.<\/p>\n
The government has said it will cut the price of subsidized Premium fuel by Rp 500 per liter from Rp 6,000 to Rp 5,500 starting Dec. 1. with the BPS estimating that the cut will help raise people\u2019s purchasing power.<\/p>\n
Central bank governor Boediono said Indonesia\u2019s growth was far better than that of many other countries.<\/p>\n
\u201cI think we need to be aware for the fourth quarter. But growth in 2008 will be quite good,\u201d he said.<\/p>\n
Finance Ministry head of fiscal policy Anggito Abimanyu said the ministry expected to record about 6.2 percent growth by the year\u2019s end, estimating the economy would expand by \u201cless than 6 percent\u201d in the last quarter of 2008.<\/p>\n
Regarding projected economic growth for 2009, the BPS said growth would be less than 6 percent as pessimism clouded businesses and the government.<\/p>\n
\u201cA 6 percent growth is the maximum,\u201d Rusman said.<\/p>\n
Finance Minister Sri Mulyani Indrawati has said Indonesia\u2019s economy may slow to as low as 5 percent in 2009 as the world economy feels the wider impact of the recession.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/economic-growth-slowest-in-6-quarters-1226982335", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }