Lowest since 2010, Second Quarter Economy grows by 4.67%

KATADATA ? The economic growth of Indonesia during the second quarter of 2015 is the lowest performance since 2010. The Central Statistics Agency (BPS) has announced the gross domestic product (GDP) growth in April-June 2015 period to be at 4.67% in year on year basis, much lower than the previous quarter, which was at 4.71%.

The Head of BPS, Suryamin, said that the slow economic growth in the second quarter of the year is because of the low level of people?s consumption. In the second quarter, the household consumption, which contributed 54.7% to the GDP, only grow by 4.97%, much lower than the first quarter, which grow by 5.01%.

While investment is the second largest contributor to the growth, with total contribution of 32.3%, it only grow by 3.55%; even though in the first quarter the investment could still grow by 4.4%. The same also goes for the export and import performane, which declined by 0.13% and 6.85%.

However, Suryamin emphasizes that the current Indonesia?s economic situation is still far from critical. ?We can call it a recession if the growth of two quarters kept on being negative. Like in the 1998 with a minus of 13.9%. Now that?s recession,? said Suryamin, Wednesday (5/8).

?Even Japan has it at around one percent. So if we are 4.67%, just compare it to other countries.?

The economy of Indonesia is also affected by the global developments. Several countries have also showed lethargic economic condition, which has caused the commodity prices, like oil and gas or non oil and gas, to decline.

The economic growth of Indonesia?s business partners have also been slow. Like the U.S. for example, which has a decline of growth from 2.9% to become 2.3%. Singapore from 2.1 to 1.7%. ?China is stagnant, while England and South Korea also not more than 3%. It means, the chain reaction has reached our country,? continued Suryamin.