Marchio Irfan Gorbiano, Jakarta – Indonesia's Gross Domestic Product (GDP) expansion slowed to 5.05 percent in the second quarter this year, from 5.27 percent in the same period last year, partly due the falls in exports, Statistics Indonesia (BPS) announced on Monday.
Consumer spending, which accounts for more than half of GDP, grew 5.17 percent in the second quarter this year, slightly higher than the 5.16 percent growth booked over the same period last year thanks to seasonal factors such as the Idul Fitri holiday and the disbursement of annual bonuses to civil servants.
Almost all components of consumer spending recorded higher growth in the April-June period, with the exception of transportation and communication sector, which slowed to 4.67 percent in the second quarter of 2019 from 5.37 percent over the same period last year.
Investments, the second-highest contributor to GDP, also slowed to 5.01 percent in the second quarter, down from the 5.85 percent over the same period last year.
The slowdown in investment growth was caused by a contraction in capital goods sales such as vehicles, cultivated biological resources (CBR) and intellectual property products, among others.
The increase in the number of civil servants and growth in the government's procurement spending boosted growth in government spending, recorded at 8.23 percent over the same quarter this year – higher than the 5.2 percent growth booked over the same period last year, said Suhariyanto.
The holding of simultaneous presidential and legislative elections on April 17 also boosted non-profit institutions serving households (NPISH), which grew 15.27 percent in the second quarter, as a result of campaign spending by presidential and legislative candidates. The NPISH, however, only contributed 1.34 percent of GDP.
Exports of goods and services fell by 1.81 percent year-on-year in the second quarter, led by exports of oil and gas products that contracted by 30.85 percent over the same period. (hen)