Investment Begins To Show Contribution To Economy: Bappenas

id Investment Begins To Show Contribution To Economy: Bappenas

Investment Begins To Show Contribution To Economy: Bappenas

Illustration - Investment. (Antara)

Jakarta, (Antara Sumbar) - Head of the National Development Planning Board (Bappenas)/Minister for National Development Planning Bambang Brodjonegoro said investment begins to show contribution to the country's economic growth, which was recorded at 5.06 percent in the third quarter of this year.

"The growth rate of 5.06 percent, perhaps, was not up to expectation but there are parts, which very interesting in the data. Investment grew 7 percent, the highest in the past several years. This is what we want," Bambang said when opening Indonesia Infrastructure Week (IIW) 2017 here on Tuesday.

The minister said the construction sector also grew 7 percent and positive performance also was shown in the manufacturing sector, which grew more than 4 percent, although not up to expectation.

"The investment sector grew 7 percent, the manufacturing sector grew 4 percent and the construction sector also grew 7 percent. That means there has been a lot of investment in the construction sector, either property or infrastructure. We begin to see that investment in infrastructure is not only from the government but also from the private sector," he said.

The Central Bureau of Statistic (BPS) said the country's economy grew 5.06 percent year-on-year in the third quarter of 2017 driven mainly by the consumption sector.

All components of GDP grew positively. The highest growth was recorded for exports rising 17.27 percent. Investment as shown by the formation of gross fixed capital grew 7.11 percent. Household consumption increased 4.93 percent and government consumption grew the lowest by 3.46 percent.

Altogether, Indonesia's GDP structure by spending in the third quarter of 2017 was dominated by household consumption reaching 55.68 percent of GDP.

Other components having large contributions is the gross fixed capital formation (PMTB) or investment with a contribution of 31.87 percent; exports of goods and services 20.50 percent and government consumption 8.80 percent.

BPS said Indonesia's economy, based on GDP on current prices in third quarter of 2017 was valued at Rp3,502.3 trillion and in fixed price was Rp2,551.5 trillion. (*)

Editor: Vicha Faradika