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Jakarta Post

Indonesian GDP growth and service industry development

  • Winarno Zain

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PREMIUM
Jakarta   /   Mon, February 17, 2020   /  11:25 am
Indonesian GDP growth and service industry development Hi-tech industry: Technicians finish assembling NC212 aircraft ordered by Vietnam in a fixed wing hangar belonging to state-owned PT Dirgantara Indonesia in Bandung, West Java. The country’s growth has been declining, thanks in part to a slowdown in the manufacturing industry. (JP/Arya Dipa)

The continued slowdown of Indonesia’s gross domestic product (GDP) growth in 2019 should not come as a surprise. The signs were already there, in particular in the continuing decline in imports. Imports in the first six months of 2019 fell by US$20 billion, a 20 percent drop from the second half of 2018. This included a $4 billion decline in fuel imports. As Indonesian manufacturing still relies heavily on imports, their steep decline in the first two quarters of 2019 should have given warning to the government that all was not going to be well in the final two quarters of 2019. And so if the GDP growth in the last two quarters of 2019 turned out to be the lowest growth since March 2017, it was because all the signs had been ignored. The environment seemed to indicate that for the government, it was business as usual. No significant measures were taken to preempt the incom...

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