GDP grows faster at 5.03% in third quarter, says BPS<\/p>\n
Leony Aurora , The Jakarta Post, Jakarta<\/p>\n
The year 2004 has been a good one for Imelda Ladianto. She was
\naccepted as a teacher by a national plus school, rented a small
\nhouse, and could officially call herself independent.<\/p>\n
\"The first thing I bought was a washing machine,\" said the 26-
\nyear-old. \"I didn't want to hand wash my laundry, it's way too
\nimpractical,\" she added.<\/p>\n
Imelda pays for her precious washing machine in monthly
\ninstallments of Rp 229,000 (US$25.58) for one year. \"I got it on
\ncredit, otherwise I couldn't afford it,\" she confessed.<\/p>\n
Cheaper credit amid low interest rates offered by banks
\nbenefits not only consumers like Imelda, but boosts domestic
\nspending -- which contributed more than 65 percent to the
\ncountry's Rp 422.9 trillion gross domestic product (GDP) in the
\nthird quarter of the year -- and promotes growth.<\/p>\n
GDP in Indonesia grew faster at 5.03 percent in the third
\nquarter of the year compared to the same period in 2003, the
\nCentral Statistics Agency (BPS) reported on Friday.<\/p>\n
Consumer spending continues to be a significant contributor to
\nGDP -- the value of all goods and services produced in an economy
\n-- as it expanded 5.09 percent from the same quarter of last
\nyear.<\/p>\n
This year's third-quarter consumer spending figure is slightly
\nlower than the 5.26 percent growth recorded in the second quarter
\nand 5.71 percent in the first.<\/p>\n
A giant leap is shown in the exports sector, which expanded
\nalmost 20 percent in the third quarter, due to soaring oil prices
\nand increasing export volumes. The second and first quarter only
\nrecorded 0.85 percent and 3.07 percent growth respectively.<\/p>\n
The agency has predicted that the worth of Indonesia's exports
\nwill hit $65 billion this year, up 6.5 percent from the previous
\nyear.<\/p>\n
Government spending decreased by 2.74 percent in the third
\nquarter of the year, compared to the third quarter of last year.<\/p>\n
Cumulatively, in the first nine months of the year, the
\ncountry's GDP expanded by 4.89 percent. Such growth exceeds the
\ngovernment's estimate of 4.8 percent for 2004.<\/p>\n
Despite the steady increase demonstrated by the quarterly GDP,
\nthere is still a possibility that the target will not be reached.<\/p>\n
\"The trend shown by records from 2000 is that growth in the
\nfourth quarter tends to slow down,\" said the agency's deputy
\nchairman of economic statistics, Slamet Mukeno.<\/p>\n
Earlier this month, the World Bank revised its forecast for
\nIndonesia's growth in 2004 to 4.9 percent, from 4.5 percent
\npreviously, after witnessing steady growth and the declining rate
\nof unemployment in this year's first semester, as well as a
\npeaceful election.<\/p>\n
The bank also increased its forecast for 2005 from 5 percent
\nto 5.4 percent, equal to what the government has targeted.<\/p>\n
However, it pointed out that Indonesia's investment climate
\nremains weak as compared to regional competitors. Overseas
\ninvestors have steered clear of the country due to security
\nconcerns, red tape, labor issues and the lack of legal certainty.<\/p>\n
As of October, foreign-funded projects increased to 969 from
\n876 during the same period of last year, while foreign direct
\ninvestment approvals fell to $8.85 billion from $9.94 billion.<\/p>\n
The BPS recorded that investment in the third quarter grew by
\n13 percent compared with the same period of last year, driven by
\ndomestic investment.<\/p>\n
In the meantime, with Idul Fitri two weeks ago and Christmas
\nfast approaching, the country will again rely on consumption to
\nfuel its growth in the fourth quarter.<\/p>\n
\"I'm thinking of buying a television set for myself for
\nChristmas,\" said Imelda. \"A 14-inch one would be nice.\"<\/p>",
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