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Jakarta Post

Bahana: Well-shielded from external volatility with Java taking the lead

  • Harry Su,

Researcher   /   Wed, January 7 2009   /  11:18 am

Indonesia's gross domestic product (GDP) composition remains largely dependent on domestic consumption. Net exports account for around 10 percent of GDP while private plus government consumption accounts for close to 65 percent. Against a backdrop of global economic slowdown, this provides safety for investors. It is worth pointing out that throughout 2008 thus far, Indonesia's GDP has continued to book positive momentum with GDP in the third quarter of last year up 3.5 percent from a quarter earlier. For the whole of 2008, our economist still expects Indonesia to book at least 6.0 percent GDP growth. Thus, in 2009, although we expect Indonesia to suffer from declining exports and investments given slowing global economies, we still expect GDP to remain positive at 4.8 percent, helped by government pump priming ahead of the 2009 elections, particularly in Ja...