Indonesian Government Releases Official GDP Growth Figure for the Year 2012
An official at Indonesia's Finance Ministry announced today that Indonesia's gross domestic product (GDP) grew by 6.23% in 2012, thus failing to meet the government's revised target of 6.3-6.5%. Factors that contributed to Indonesia's lower than expected economic growth last year were weak exports due to poor international trade and non-optimal government spending. On the positive side, all sectors of the Indonesian economy experienced growth.
Head of Statistics Indonesia, the government institution that conducts statistical surveys, said that the majority of Indonesia's economic growth in 2012 was accounted for by household consumption and gross fixed capital formation (an indicator that measures the net increase in fixed capital). Household consumption, which accounts for almost 55 percent of total GDP, grew by 5.28 percent, while gross fixed capital formation grew by 9.81 percent and accounts for 33.16 percent of GDP.
Sectors that contributed most to economic growth in 2012 were the Processing Industry (23.94 percent) and Trade, Hotels and Restaurants (13.90 percent). The country's GDP in current prices stands at IDR 8,241.9 trillion (±US $885 billion).
Largest Contributors to Indonesia's GDP growth in 2012:
| Growth in 2012 |
|
| Household Consumption |
5.28% |
| Government Spending | 1.25% |
| Gross Fixed Capital Formation | 9.81% |
| Export | 2.01% |
| Import | 6.65% |
Although Indonesia's GDP result is lower than expected, the country still presented the second-fastest growth among the G-20 group members (China being the fastest growing economy). Due to Indonesia's natural resources and large domestic consumption, Foreign Direct Investment (FDI) resulted in a record high of IDR 221 trillion (US $23 billion), implying a 26 percent increase compared to 2011. Foreign and domestic investments together increased to IDR 313.2 trillion (US $34 billion), a 25 percent increase from 2011. Indonesia's Investment Coordinating Board (BKPM) targets investments totaling IDR 390.3 trillion in 2013.
| GDP Growth |
|
| Quarter 1 - 2012 |
6.3% |
| Quarter 2 - 2012 | 6.4% |
| Quarter 3 - 2012 | 6.2% |
| Quarter 4 - 2012 | 6.1% |