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Jakarta Post

Consumption, investment, GDP growth through tax rate reform

  • Anak Agung Gde Agung

    Former minister of social affairs, is CEO of several multinational and domestic corporations

Jakarta   /   Mon, April 2, 2018   /  05:43 pm
Consumption, investment, GDP growth through tax rate reform Jokowi spends the last Sunday of 2017 shopping in Malioboro, Yogyakarta, on Dec. 31, 2017. (Presidential Press Bureau/File)

According to the Central Statistics Agency (BPS), household spending growth in 2017 dropped to 5.01 percent, the lowest over the past five years. The growth was 5.43 percent in 2013.

This situation is caused by several factors, including the decrease and change in consumption patterns, economic uncertainty and the fall in purchasing power of various segments of society. 

Our informal workforce still makes up a very large number, approximately 57 percent, of the total labor pool of 68.5 million workers. These people lack fixed income and are therefore extra careful about spending. 

Even though investment grew by a hefty 6.15 percent in 2017 from the previous year, investment in labor intensive sectors went down. 

According to the Indonesian Investment Coordinating Board (BKPM), the absorption of the labor force by ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.