GDP growth can be maintained: Minister
The growth rate of the economy, which the Central Agency of Statistics (BPS) said reached 6.39% in the second quarter, can be maintained throughout the year, Coordinating Minister for Economic Affairs Sri Mulyani Indrawati told a press conference on Friday.
She said that despite a declining global economy, Indonesia continued to produce strong growth figures.
The second quarter figure demonstrated that the economy had grown more than 6% for the past eight quarters.
The non-oil and gas sector had grown by around 7% since the second quarter of 2006, she said, adding 6.9% in the second quarter of this year.
Growth of 5.3% in the sector of agriculture, stock-raising, forestry and fisheries was particularly heartening, she said, while productive sectors include plantations, electronics, motorcycles and automotives had all demonstrated growth.
Export of goods and services set the highest rate of growth at 15.8% during the second quarter, BPS deputy head Slamet Sutomo said separately.
Of exports, five primary commodities – crude palm oil, crude oil, gas, coal and rubber – made up 45.17% of the total.
BPS also revised upward the first quarter growth figure to 6.32% from 6.28%.
The highest growth in the second quarter occurred in the areas of distribution and shipping, power and gas, financial services, real estate and company services.
While growth in these areas had dominated the economy over the past few years, the level of growth in these sectors was now accelerating, BPS said. Transport and shipping had grown by 20% in the first half of 2008, compared to growth of 11.6% in the same period a year earlier.
Growth in processing industries grew by only 4.1% in the first half of 2008, down from 5.4% in the first half of 2007.
M. Chatib Basri, head of the Economic and Social Research institute at the University of Indonesia, said the figures showed that Indonesia’s economy was on a positive track and investment was improving, although there remained a concentration of investment in capital-intensive industries.
In its annual economic review, the International Monetary Fund (IMF) said overall, the Indonesian economy has been relatively unscathed by turbulent global market conditions and the fallout of the US sub-prime mortgage crisis.
It forecast Indonesian annual growth would ease to 6.1% in 2008 and return to 6.3% next year, the same level as in 2007 and the highest growth rate in a decade.
The fund said strong domestic demand and higher commodity prices have helped Indonesia maintain a strong pace of growth. The country exports large volumes of palm oil, rubber and cocoa.
She said that despite a declining global economy, Indonesia continued to produce strong growth figures.
The second quarter figure demonstrated that the economy had grown more than 6% for the past eight quarters.
The non-oil and gas sector had grown by around 7% since the second quarter of 2006, she said, adding 6.9% in the second quarter of this year.
Growth of 5.3% in the sector of agriculture, stock-raising, forestry and fisheries was particularly heartening, she said, while productive sectors include plantations, electronics, motorcycles and automotives had all demonstrated growth.
Export of goods and services set the highest rate of growth at 15.8% during the second quarter, BPS deputy head Slamet Sutomo said separately.
Of exports, five primary commodities – crude palm oil, crude oil, gas, coal and rubber – made up 45.17% of the total.
BPS also revised upward the first quarter growth figure to 6.32% from 6.28%.
The highest growth in the second quarter occurred in the areas of distribution and shipping, power and gas, financial services, real estate and company services.
While growth in these areas had dominated the economy over the past few years, the level of growth in these sectors was now accelerating, BPS said. Transport and shipping had grown by 20% in the first half of 2008, compared to growth of 11.6% in the same period a year earlier.
Growth in processing industries grew by only 4.1% in the first half of 2008, down from 5.4% in the first half of 2007.
M. Chatib Basri, head of the Economic and Social Research institute at the University of Indonesia, said the figures showed that Indonesia’s economy was on a positive track and investment was improving, although there remained a concentration of investment in capital-intensive industries.
In its annual economic review, the International Monetary Fund (IMF) said overall, the Indonesian economy has been relatively unscathed by turbulent global market conditions and the fallout of the US sub-prime mortgage crisis.
It forecast Indonesian annual growth would ease to 6.1% in 2008 and return to 6.3% next year, the same level as in 2007 and the highest growth rate in a decade.
The fund said strong domestic demand and higher commodity prices have helped Indonesia maintain a strong pace of growth. The country exports large volumes of palm oil, rubber and cocoa.