Below is a list with tagged columns and company profiles.

Today's Headlines Gross Domestic Product

  • Government Trims Indonesia's GDP Growth Target in 2017 State Budget

    The government of Indonesia revised down its forecast for economic growth in 2017 to the range of 5.3 - 5.9 percent (y/y). On Friday (20/05) Indonesian Finance Minister Bambang Brodjonegoro informed parliament about the change in the growth outlook (related to the 2017 State Budget). Initially, the government projected Indonesia's 2017 GDP growth in the range of 5.5 - 5.9 percent (y/y). Brodjonegoro did not explain, however, why the government decided to revise down its GDP growth forecast in the 2017 State Budget.

    Read more ›

  • GDP Growth: Slowing Household Consumption in Indonesia is Worrisome

    Efforts to raise people's purchasing power and household consumption in Indonesia will be key to push for higher economic growth in 2016. According to the latest data from Statistics Indonesia (BPS), Indonesia's gross domestic product (GDP) growth reached 4.92 percent (y/y) in the first quarter of 2016. Although this result failed to meet analysts' projections (which generally stood around 5 percent y/y), it was higher than the 4.73 percent (y/y) economic growth pace that was posted in the same quarter one year earlier.

    Read more ›

  • Disappointing Figure; Indonesia's GDP Growth at 4.92% in Q1-2016

    Economic growth of Indonesia was weaker-than-estimated in the first quarter of 2016. According to the latest data from Statistics Indonesia (BPS), released today (04/05), Indonesia's gross domestic product (GDP) growth reached 4.92 percent (y/y) in Q1-2016. Most analysts expected to see a GDP growth pace slightly above the 5 percent (y/y) mark and therefore the publication of BPS was disappointing and raises questions whether Indonesia's economic growth can in fact accelerate significantly in 2016.

    Read more ›

  • GDP Update: What about Indonesia's Economic Growth in Q1-2016?

    Darmin Nasution, the Chief Economics Minister of Indonesia, said economic growth of Indonesia in the first quarter of 2016 may be somewhat curtailed as the (food) harvest season has shifted from March to April and May. The harvest season is important for the economy because it causes a multiplier effect. However, government-led infrastructure investment may still be able to push Indonesia's gross domestic product (GDP) growth higher in Q1-2016 compared with the 5.04 percent (y/y) growth of Q4-2015. Nasution said he expects a Q1-2016 GDP growth rate around 5.1 - 5.2 percent (y/y).

    Read more ›

  • World Bank Cuts Forecast for Indonesia's 2016 GDP Growth to 5.1%

    In its March 2016 Indonesia Economic Quarterly, titled "Private Investment is Essential", the World Bank cut its forecast for Indonesia's economic growth in 2016 to 5.1 percent year-on-year (y/y) from an earlier estimate of 5.3 percent (y/y). This downward revision was made due to weaker-than-expected global economic conditions, further weakening commodity prices, and limitations to Indonesian government spending brought about by a looming shortfall in tax revenue.

    Read more ›

  • Lower Fuel Prices Would Improve Indonesia's Purchasing Power

    Indonesia's economic growth in the first quarter of 2016 could reach 5 percent (or more) year-on-year provided that the government manages to optimize spending on infrastructure projects and improve people's purchasing power. Large drops in domestic car and motorcycle sales so far this year show that Indonesia's purchasing power remains bleak. Other indicators - such as cement and retail sales - are also not too strong. Firmanzah, economist at the Paramadina University, said the 0.09 percent (m/m) deflation that occurred in February could be a sign of further weakening purchasing power.

    Read more ›

  • Manufacturing Industry Indonesia Contributes 18.1% to GDP

    Indonesia's manufacturing industry was worth IDR 2,097.7 trillion (approx. USD $156 billion) in 2015, contributing 18.1 percent to the country's gross domestic product (GDP), up from 17.8 percent of GDP in the preceding year. However, this higher contribution of manufacturing to the economy is mainly caused by the declining roles of oil & gas, commodities, agriculture and mining within the Indonesian economy. These sectors have all seen their roles decline amid persistently low commodity prices.

    Read more ›

  • Official 2015 GDP Growth: Economy of Indonesia Expands 4.79%

    On Friday morning (05/02) Statistics Indonesia (BPS) announced that Indonesia's economy expanded 5.04 percent year-on-year in the fourth quarter of 2015, slightly higher than most analysts had been expecting. Full-year 2015 gross domestic product (GDP) growth was 4.79 percent (y/y). Although this figure is in line with expectations (which ranged between 4.70 and 4.80 percent), the growth pace still constitutes a six-year low for Indonesia, Southeast Asia's largest economy. Meanwhile, BPS also announced it had revised Q3-2015 GDP up from 4.73 (y/y) to 4.74 (y/y).

    Read more ›

  • Indonesia Posts Trade Deficit in December, Surplus in 2015

    Indonesia posted a trade deficit of USD $230 million in December 2015 as imports (USD $12.12 billion) exceeded exports (USD $11.89 billion), the second monthly trade deficit in 2015. Overall, the country's trade balance shows a surplus of USD $7.51 billion in 2015, significantly improving from the USD $2.2 billion trade deficit in the preceding year. But despite posting a good trade surplus in full-year 2015, a closer look at the data still reveals weak global and domestic conditions.

    Read more ›

  • What is the Impact of China’s Economic Slowdown on Indonesia?

    Economic turmoil that has pushed China’s growth to a 25-year low has a direct effect on Indonesia as China is the key trading partner of Indonesia. Concern about China’s economic slowdown (and the impact of this slowdown on the world economy) persist in 2016 as the country's Caixin/Markit manufacturing purchasing managers' index (PMI) contracted for the 10th straight month in December 2015 (at 48.2), while the services reading for December fell to a 17-month low (50.2).

    Read more ›

Latest Columns Gross Domestic Product

  • Finance Minister Chatib Basri on Indonesia’s Economic Fundamentals

    Indonesian Finance Minister Chatib Basri said that the lower pace of economic growth in China, the world’s second-largest economy, is a major concern for Indonesia as it leads to declining demand for commodities (and thus places downward pressure on commodity prices). As Indonesia is a major commodity exporter - such as coal, crude palm oil, nickel ore and tin - the country feels the impact of weak global demand for commodities. About 60 percent of Indonesia’s exports are commodities, mostly raw ones.

    Read more ›

  • Indonesia’s House Approves 2015 State Budget; Budget Deficit 2.21% of GDP

    Indonesia’s House of Representatives (DPR) approved the 2015 State Budget on Monday (29/09) that was proposed by the outgoing President Susilo Bambang Yudhoyono administration. The budget deficit is now set at IDR 245.9 trillion (USD $20.5 billion), equivalent to 2.21 percent of gross domestic product (GDP), and lower than the 2.32 percent of GDP proposed by the government in both the Financial Memorandum and the Revised 2015 State Budget. However, the accepted budget deficit is still high compared to previous years.

    Read more ›

  • Indonesian Government Eyes Economic growth of 5.8% in 2015

    The government of Indonesia agreed with the House Budget Committee to adjust the economic growth target of Southeast Asia’s largest economy in 2015 to 5.8 percent, 0.2 percentage point up from the initial growth target proposed by the government in the Financial Memorandum as well as the 2015 State Budget Draft (APBN). Still, the 5.8 percent gross domestic product (GDP) growth target constitutes the lowest growth target set in Indonesia’s state budget (excluding revised state budgets) since the year 2010.

    Read more ›

  • Economy of Indonesia Expected to Grow 5.2 to 5.3% only in 2014

    The Indonesian government admits that it is difficult to achieve the 5.5 percent gross domestic product (GDP) growth target that was set in the Revised 2014 State Budget (APBN-P 2014). In fact, Deputy Finance Minister Bambang Brodjonegoro stated that Southeast Asia’s largest economy will have to work hard to reach +5.3 percentage point GDP growth this year. “We have to be realistic. Hopefully GDP growth will improve in the second half of 2014 to a level of 5.3 percent. The current forecast for GDP growth in 2014 is 5.2-5.3 percent,” he said.

    Read more ›

  • Economic Growth of Indonesia in Second Half 2014: Slowing or Growing?

    Indonesia’s gross domestic product (GDP) growth in the first half of 2014 reached 5.17 percent (year-on-year), thus continuing the slowing growth trend that has been recorded by the country since 2011. Forecasts for GDP growth in the second half of 2014 indicate a slight improvement (to the range of 5.2 to 5.3 percent year-on-year) supported by strong household consumption, increased government spending and further growth of the trade and services sector. However, in recent quarters the official GDP figure has been lower than most forecasts.

    Read more ›

  • Economic Growth of Indonesia Slows to 5.12% in the Second Quarter of 2014

    Statistics Indonesia (BPS) announced on Tuesday (05/08) that Indonesia’s economy grew 5.12 percent in the second quarter of 2014 from the same quarter last year. This means that gross domestic product (GDP) growth of Indonesia has continued the slowing trend it has been experiencing since 2011. The 5.12 percentage point GDP growth in Q2-2014 is the slowest growth pace that has been recorded by Southeast Asia’s largest economy since the fourth quarter of 2009. What explains this slowing economic growth of Indonesia?

    Read more ›

  • Prabowo Subianto and Jokowi Should Focus on Equality, Not GDP Growth

    Senior economist at the Institute for Development of Economics and Finance (INDEF), Didier Damanhuri, believes that Indonesia’s two presidential candidates - Joko Widodo (popularly known as Jokowi) and Prabowo Subianto - are both similar in economic approach as both men are primarily focused on high gross domestic product (GDP) growth as the measurement for economic development, while, in fact, many countries that only focus on GDP growth show a high degree of economic inequality.

    Read more ›

  • Bank Indonesia Expects Indonesian Economy to Grow 5.3% in Q2-2014

    The central bank of Indonesia (Bank Indonesia) expects Indonesia’s economy to grow by 5.3 percent in the second quarter of 2014. If realized, it means that gross domestic product (GDP) of Southeast Asia’s largest economy will accelerate from the disappointing GDP growth result recorded in the first quarter of 2014 (5.21 percent). Perry Warjiyo, Deputy Governor at Bank Indonesia, said that growth in Q2-2014 will be primarily supported by household consumption and investments which traditionally peak in the second quarter.

    Read more ›

  • Government of Indonesia Proposes to Revise Macroeconomic Assumptions

    The government of Indonesia will submit a new draft proposal for the 2014 Revised State Budget (APBN-P 2014) on 20 May 2014. Of the seven basic macroeconomic assumptions in the 2014 State Budget (APBN 2014), three assumptions are proposed to be revised. These involve general economic growth, the Indonesian rupiah exchange rate, and crude oil lifting. The government felt that the assumptions need a revision as results in the first quarter of 2014 have not been up to expectation.

    Read more ›

  • What about Indonesia's Economic Growth in 2014? Growing or Slowing?

    After Statistics Indonesia (BPS) had announced on Monday (05/05) that Indonesia's gross domestic product (GDP) grew by 5.21 percent year-on-year (yoy) in the first quarter of 2014 (considerably below analysts' projections of around 5.6 percent), concerns have risen about the country's economic expansion for the remainder of the year. The government of Indonesia targets a GDP growth rate of between 5.8 and 6.0 percent (yoy). However, several international institutions do not agree with this optimistic target.

    Read more ›

No business profiles with this tag