Indonesia’s gross domestic product (GDP) expanded 5.07 percent year-on-year (yoy) in the first quarter of 2019, slightly higher than the 5.06 percent recorded in the same period last year, Statistics Indonesia (BPS) announced on Monday.
Household spending, which accounts for more than half of the GDP, expanded by 5.01 percent in the first quarter, higher than the 4.94 percent growth recorded over the same period in 2018.
BPS head Suhariyanto said in Jakarta on Monday that the growth in household spending remained strong thanks to a jump in retail sales to 8.1 percent in the first quarter compared to 0.7 percent over the same period last year.
Transactions using electronic money, debit and credit cards were up by 14.56 percent in the first quarter this year.
“This shows that the household spending and people’s purchasing power remain in good shape,” said Suhariyanto.
Investments – the second-largest contributor to GDP – grew by 5.03 percent in the first quarter, lower than 7.94 percent recorded over the same period last year, thanks to a slowdown in sales of machinery and vehicles, among others.
Government expenditure grew 5.21 percent in the first quarter, almost double from the 2.71 percent growth recorded in the first quarter of last year, thanks to an increase in spending on goods and services as well as the expenditure for the government’s social assistance program, Suhariyanto said.
The presidential and legislative elections have also contributed to the GDP expansion as non-profit institutions serving households (LNPRT) grew 16.93 percent in the first quarter.
Exports of goods and services contributed negatively to the GDP growth by 2.08 percent as commodity prices dropped and a slowdown occurred with Indonesia’s main trading partners, such as China, while imports, which is a deducting component in the GDP growth, also contracted by 7.75 percent. (bbn)