Economy grew by 3.32% in 2001: BPS report<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Indonesia's economy fared better last year compared to many other
\neconomies in the region amid the global economic slowdown with
\ngross domestic product (GDP) growing by 3.32 percent.<\/p>\n
The Central Bureau of Statistics (BPS) said in a report
\nreleased on Monday that domestic consumption, which grew by 5.94
\npercent, had been the prime mover of the economy in 2001.<\/p>\n
Despite the devastating impact of the 1997 financial crisis,
\nIndonesian households have been on a spending spree particularly
\nfollowing the election of President Megawati Soekarnoputri in
\nJuly last year.<\/p>\n
The government is expecting domestic consumption to continue
\nto play a major role in pushing economic growth this year.<\/p>\n
But the BPS report suggested that the economy was weakening in
\nthe fourth quarter due to slower export performance as the
\ncountry's main export market, the U.S., has been in an economic
\nrecession.<\/p>\n
The bureau said that although fourth quarter GDP grew by 1.6
\npercent compared to the same period in 2000, it contracted by
\n1.21 percent when compared to the third quarter of 2001.<\/p>\n
Economists said that the fourth quarter economic contraction
\nwas partly due to the decline in exports.<\/p>\n
BPS deputy chief Kusmadi Saleh said that the global economic
\nslowdown, which was aggravated by the Sept. 11 terrorist attacks
\nin the U.S., had affected the country's export performance and
\nthe fourth quarter GDP.<\/p>\n
There has been concern that a continued slowdown in exports
\ncould put the government's 4 percent economic growth target this
\nyear in jeopardy particularly with investment expected to remain
\nscarce.<\/p>\n
Exports have been the main driver of the 4.8 percent economic
\ngrowth in 2000.<\/p>\n
But the country's export performance, which relies on low-end
\nmanufacturing products and commodities, fared better than the
\nhigh-end electronic export products of other countries like
\nSingapore and Malaysia.<\/p>\n
BPS said that exports still managed to grow by 1.88 percent in
\n2001.<\/p>\n
Economists said that the strong domestic consumption and the
\npositive export growth, helped the economy to grow in line with
\nthe government's forecast of 3.5 percent.<\/p>\n
In comparison, Singapore's economy contracted by 2.2 percent
\nlast year.<\/p>\n
Senior economist Emil Salim said that the government economic
\ngrowth target of 4 percent this year could still be achieved
\ndespite the poor export performance in the final quarter of 2001
\nas long as the government could move quickly to restore the
\ninvestment climate at home and take advantage of the expected
\nrebound in the U.S. economy in the second half of this year.<\/p>\n
\"Last year, we managed to grow significantly better than our
\nneighbors only because of strong domestic consumption.<\/p>\n
\"If we can improve our exports and investment performance,
\nthen we could grow more this year,\" the former economic minister
\nsaid.<\/p>\n
He was quick to add, however, that it depended on whether the
\ngovernment could provide stability and certainty in order to lure
\nmore investment.<\/p>\n
Another economist Raden Pardede from Danareksa Research
\nInstitute also stressed the importance of the government's role
\nin ensuring a better investment climate to prop up the country's
\ngrowth.<\/p>\n
\"Last year's figure shows that both investment and export
\nperformance are still slowing down,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/economy-grew-by-332-in-2001-bps-report-1447893297",
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