RI growth 8 percent last year<\/p>\n
JAKARTA (JP): Indonesia's economy last year grew by 8.07
\npercent, more than the 7.48 percent recorded in 1994, the Central
\nBureau for Statistics announced yesterday.<\/p>\n
The bureau's chairman, Sugito, reported to President Soeharto
\nat the latter's residence that Indonesia's per capita income had
\nrisen to US$1,023 last year from $920 in 1994.<\/p>\n
\"So based on our gross domestic product (GDP), our income per
\ncapita has passed the threshold of $1,000. However, based on our
\ngross national product (GNP), our income per capita was still
\nbelow $1,000, at $978 last year,\" Sugito said.<\/p>\n
For the meeting with Soeharto, Sugito was accompanied by State
\nMinister of National Development Planning Ginandjar Kartasasmita.<\/p>\n
Sugito said that last year's economic growth rate was
\ncalculated on the basis of 1993 prices.<\/p>\n
The government announced last August the revision of its
\ncalculation of the country's GDP by using 1993 prices, instead of
\n1983 prices. The revision resulted in a revised, statistically
\nhigher growth rate between 1989 and 1994, with an average of 8.3
\npercent per annum, as compared to the 6.9 percent based on 1983
\nprices.<\/p>\n
Although Indonesia's economic growth and per-capita income
\nwent up, Ginandjar warned yesterday that development disparities
\nbetween regions are still there.<\/p>\n
He said Indonesia would still need foreign assistance to fund
\nits development projects, especially for infrastructure in
\nislands other than Java.<\/p>\n
\"We will continue our efforts to distribute our economic
\ngrowth by expanding investment, especially in infrastructure, to
\nislands other than Java,\" Ginandjar added.<\/p>\n
Factors<\/p>\n
Speaking on the factors contributing to GDP growth, Sugito
\nexplained that seven of the economy's nine sectors considered in
\nthe calculation, showed rapid growth last year compared to 1994,
\nwhile the other two recorded slowing growth.<\/p>\n
The fast-growing sectors included agriculture, mining,
\nutility, trading, hotels and restaurants, transportation and
\ncommunications, finance, and services. The slow growth sectors
\nwere the processing and construction industries.<\/p>\n
The highest growth, 15.5 percent, was recorded by the utility
\nsector, which includes electricity, gas and drinking water. This
\nsector grew by 12.7 percent in the previous year. The lowest
\ngrowth was recorded by the service sector, which grew by 3.77
\npercent last year, up from 2.77 percent in 1994.<\/p>\n
The agriculture sector grew by 3.96 percent last year,
\ncompared to 0.55 percent in the previous year.<\/p>\n
The food sub-sector, which contracted 2.1 percent in 1994,
\ngrew by 4.5 percent last year because of an increase in rice
\nproduction, Sugito said.<\/p>\n
The construction sector and the processing industry grew by
\n12.9 and 11.13 percent respectively last year, but their growth
\nrates were less than the 14.9 and 12.5 percent they recorded a
\nyear earlier.<\/p>\n
Slower growth in the processing industry was mainly due to a
\n4.65 percent drop in the production of liquefied natural gas.<\/p>\n
Industrialization<\/p>\n
Sugito said the economy was in transition towards
\nindustrialization, as shown by the declining contribution of the
\nagriculture sector and the increasing contribution of the
\nindustrial sector to GDP.<\/p>\n
Agriculture contributed 17.2 percent to economic output in
\n1995, compared to 17.4 percent the previous year, while the
\nindustry sector's contribution increased to 24.3 percent last
\nyear from 23.5 percent in 1994.<\/p>\n
\"If we look back on our economy in 1983, the industry sector
\ncontributed only 12.7 percent to the GDP. And in 1995, it's at
\n24.3 percent, almost double. Fantastic,\" Sugito enthused.<\/p>\n
From last year's GDP of Rp 445.4 trillion (US$190.3 billion at
\ncurrent rate), 55.99 percent went on household consumption and
\n28.76 percent on investment.<\/p>\n
Sugito said household consumption recorded a 6.25 percent
\nincrease last year, compared to 5.81 percent in 1994, while
\npopulation growth only made 1.6 percent last year.<\/p>\n
\"This means that our consumption has continued to grow. And
\nsuch consumption growth must have been enjoyed by the lower
\nlevels of society, because consumption at the top is already
\nsaturated. That's a good sign for Indonesia's economy,\" Sugito
\nsaid.<\/p>\n
He noted that investment grew by 3.39 percent last year,
\ncompared to 2.31 percent growth in the previous year. \"It must be
\nremembered that this growth is in investment realization, not
\napprovals.\"<\/p>\n
Sugito said such high and increasing investments will help
\npush economic growth this year and in the coming years.<\/p>\n
Supporting Sugito's argument, Ginandjar said such high levels
\nof investment indicate that the country is becoming increasingly
\nindependent in its development.<\/p>\n
\"Our domestic capital to finance development continues to
\nincrease. So it's not true that we depend on foreign aid to
\nfinance development,\" Ginandjar claimed. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-growth-8-percent-last-year-1447893297",
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