Signs of economic recovery continue: BPS<\/p>\n
JAKARTA (JP): The country's gross domestic product (GDP) rose
\nby 1.54 percent in the third quarter of this year compared to the
\nsecond quarter: Another sign that the economy is improving,
\naccording to the Central Bureau of Statistics (BPS).<\/p>\n
BPS reported here on Monday that the third quarter GDP growth
\nwas up by 0.54 percent compared to the same period last year.<\/p>\n
BPS's chief Sugito Suwito said the growth in the July-
\nSeptember period was led by the mining, transportation and
\ncommunication sectors.<\/p>\n
\"Assuming that the economy will continue to post positive
\ngrowth in the fourth quarter, full-year 1999 GDP is expected to
\ngrow by 0.12 percent compared to last year,\" BPS chief Sugito
\nSuwito told reporters at a media conference.<\/p>\n
Sugito expects GDP to grow by 1.03 percent in the fourth
\nquarter 1999 compared to the third quarter.<\/p>\n
The economy contracted by more than 13 percent in 1998 as the
\neconomic crisis that started in the middle of 1997 deepened. But
\nGDP started to grow in the second quarter of this year at 1.82
\npercent compared to the same period last year.<\/p>\n
BPS said the 1999 GDP estimate based on current prices was Rp
\n1,116.4 trillion (about US$159.5 billion) or a GDP per capita of
\nRp 5.4 million ($770).<\/p>\n
Based on the 1993 constant price, the 1999 GDP was Rp 376.5
\ntrillion or up 0.12 percent compared to Rp 376.1 trillion, BPS
\nadded.<\/p>\n
\"This is a good sign. The BPS' GDP figure is even better than
\nours,\" said Bank Indonesia deputy governor Achjar Iljas, who is
\nalso responsible for the central bank's statistics.<\/p>\n
The central bank had earlier predicted third quarter GDP at
\n0.2 percent, and full year GDP growth of between minus 1 percent
\nand zero.<\/p>\n
Analysts also welcomed the rise.<\/p>\n
\"This is a good sign. The economy is fundamentally
\nimproving,\" said Budi Hikmat, an economist at PT Bahana
\nSecurities.<\/p>\n
He also said the GDP structure reflected greater confidence in
\nthe business sector.<\/p>\n
BPS said fixed capital formation in the third quarter
\nincreased by 2.14 percent compared to the second quarter, and its
\nportion in the GDP increased from 18.42 percent to 19.11 percent.<\/p>\n
But Sugito said although this indicated that the real sector
\nhad started to grow, the portion of the fixed capital formation
\nin the GDP was relatively small compared to 35 percent in
\nThailand and South Korea, 32 percent in Malaysia and 25 percent
\nin the Philippines.<\/p>\n
\"This means that investment in our economy is still low,\" he
\nsaid.<\/p>\n
Sugito also dismissed earlier suggestions that the
\ndeflationary trend in the economy since March was due
\nparticularly to the declining purchasing power of households.<\/p>\n
He pointed out that the household consumption expenditure
\ncomponent in the GDP grew by 0.95 percent in the third quarter
\ncompared to the second quarter, and grew by 6.42 percent in the
\nthird quarter of this year compared to the same quarter of last
\nyear.<\/p>\n
\"This means that household consumption expenditure has not
\ndeclined,\" Sugito said.<\/p>\n
He added household consumption expenditure based on the 1993
\nconstant price increased to Rp 67.9 trillion in the third quarter
\nfrom Rp 67.3 trillion in the second quarter, but based on current
\nprices it declined to Rp 200.1 trillion from Rp 203.8 trillion.<\/p>\n
\"This reflects that the volume of goods and service consumed
\nby households have tended to increase, but have been purchased at
\nrelatively lower prices,\" Sugito said, pointing to the low
\ninflation in the third quarter.<\/p>\n
BPS said the mining sector grew by 4.30 percent in the third
\nquarter of the year from the second quarter, and 0.62 percent
\nfrom the third quarter of last year.<\/p>\n
The growth in the mining sector was mostly due to the
\nimproving non-oil, gas and mining industries, BPS said.<\/p>\n
It said the manufacturing sector grew by 3.40 percent in the
\nthird quarter from the second quarter and contracted by 0.4
\npercent compared to the same quarter last year.<\/p>\n
BPS reported that the electricity, gas and water sectors grew
\nby 2.90 percent in the third quarter compared to the second
\nquarter, up 9.34 percent compared to the same period last year.<\/p>\n
The bureau said that trade, hotel and restaurant sectors grew
\nby 3.49 percent in the third quarter from the second quarter, and
\n3.86 percent from the same period last year.<\/p>\n
Transportation and communications grew by 3.82 percent on a
\nquarter to quarter basis, and 8.39 percent on a year to year
\nbasis, the bureau said.<\/p>\n
The financial, rental and service sectors grew by 1.14 percent
\nin the third quarter from the second quarter, but had contracted
\nby 5.51 percent compared to the same quarter last year, BPS said.<\/p>\n
BPS also said the agriculture sector contracted 4.60 percent
\nduring the third quarter of the year compared with the second
\nquarter, down 4.54 percent from the third quarter last year.
\n(rei)<\/p>",
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