Economy grew by 5.13% in 2004: BPS<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
Despite pre-election jitters and a final-quarter slowdown, the
\neconomy in 2004 still managed to grow by 5.13 percent, continuing
\na steady four-year improvement, the Central Statistics Agency
\n(BPS) said on Wednesday.<\/p>\n
The figure, which exceeded the initial target of 4.8 percent
\nand 2003's growth of 4.1 percent, has pushed the nation's income
\nper capita to Rp 10.64 million (US$1,181), from Rp 9.57 million
\nthe year before.<\/p>\n
The report shows that strong household consumption continued
\nto be the main fuel of the economic engine, making up about 66.54
\npercent of the gross domestic product (GDP) -- the value of goods
\nand services produced throughout the year.<\/p>\n
Nevertheless, investment and exports had managed to show a
\nsteady expansion and began to contribute more to the GDP growth,
\nBPS head Choiril Maksum said.<\/p>\n
Most sectors in the economy had reflected this overall growth,
\nexcept for the mining sector, which had contracted by 4.61
\npercent, Choiril said.<\/p>\n
\"The most significant growth was in the transportation and
\ncommunications sector, at 12.70 percent,\" he said.<\/p>\n
Trailing further behind, the construction sector had expanded
\nby 8.17 percent over the year, while financial services grew by
\n7.72 percent.<\/p>\n
With some 40 million people currently living on or below the
\npoverty line, and 2.5 million new workers entering the country's
\njob market each year, Indonesia still needs economic growth of
\nmore than 6 percent to soak up its unemployment.<\/p>\n
Estimates by economists show that each extra 1 percent of GDP
\ngrowth per annum would create up to 400,000 new jobs.<\/p>\n
However, the country's improving investment and export markets
\nboded well for the future, BPS social statistics official Rusman
\nHeriawan said.<\/p>\n
\"In previous years, consumption was the backbone of our
\neconomy,\" he said. \"However, we can see that investment growth in
\n2004 has outpaced growth in consumption.\"<\/p>\n
Consumer spending grew by 4.94 percent in 2004 while growth in
\ninvestment reached 15.71 percent.<\/p>\n
However, in terms of total numbers, consumer spending still
\nmade up the lion's share of GDP, at about 66.5 percent, as
\nagainst investment, 20.9 percent, while net-export earnings
\ncontributed the remaining 12.6 percent.<\/p>\n
Indonesia's exports grew to an historic high of $69.71 billion
\nlast year, up 11.49 percent from the previous year, boosted by
\nstrong sales in non oil and gas commodities of palm oil,
\nelectronics, clothing, coal and tin.<\/p>\n
Still, analysts say much work is left to be done to boost more
\nof growth in investment.<\/p>\n
Business remains poor here compared with Indonesia's regional
\ncompetitors, with overseas investors steering clear of the
\ncountry because of corruption in business, excessive red tape,
\nhigher relative costs of labor and uncertainties about the legal
\nsystem and security situation.<\/p>\n
Nevertheless, because of the strong consumption and improving
\ninvestment and export trends, Rusman predicted this year's
\neconomic growth target of 5.5 percent was attainable.<\/p>",
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