TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsGDP growth surprises to upside thanks to construction projects
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
All too familiar: Vehicles are stuck in traffic on Nov. 13, 2024, during the evening rush hour in Jakarta. Most of Jakarta's workers reside on the outskirts of the city. (AFP/Bay Ismoyo)
I
ndonesia’s economic growth has far outstripped forecasts thanks to infrastructure projects getting pushed ahead and state-sponsored consumption incentives.
Statistics Indonesia (BPS) executive Edy Mahmud revealed in a press conference on Tuesday that gross domestic product (GDP) grew 5.12 percent year-on-year (yoy) in the second quarter, beating the 4.8 percent market consensus.
The figure marks a significant acceleration 4.87 percent growth registered in the previous quarter and from 5.02 percent in last year’s second quarter.
Gross fixed capital formation (GFCF), which reflects investment in fixed assets like buildings, machinery and equipment, jumped 6.99 percent yoy, with the most significant increase seen in machinery purchases, Edi said.
He mentioned government projects as drivers of GFCF growth, such as toll roads in Sumatera and Java, the next stage of the MRT Jakarta, the Bali MRT, the 3 million houses program and the Jakarta sea wall.
Government spending for capital goods, which comprises items included in the GFCF component of GDP, was up 30 percent yoy despite the fact that overall government expenditure contracted by 0.33 percent yoy.
A GDP boost also came from consumer incentives rolled out in the second quarter to increase consumer spending in the summer holiday period, including transportation discounts.
