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Jakarta Post

Social assistance boosts household purchasing power

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, February 8, 2019   /   10:44 pm
Social assistance boosts household purchasing power A woman buys vegetables at a market. (Tempo/File)

Statistics Indonesia has said an increase in social assistance from the government for low income families last year helped boost people's purchasing power, the main aspect in gross domestic product (GDP) growth.

“It means that government cash transfers to low income households helped them buy or consume [goods],” BPS deputy statistics analyst Sri Soelistyowati said in a media conference on Wednesday as reported by

 BPS data shows that 2018 social assistance grew 52.48 percent compared to 11.48 percent the previous year. According to Finance Ministry data, the government disbursed Rp 88.90 trillion (US$6.36 billion) in social assistance of various types last year.

Most of the assistance was disbursed in the fourth quarter as the amount grew 72 percent, from the figure distributed in the fourth quarter of the previous year.

Other factors that contributed to people’s purchasing power included better farmers’ earnings and an increase in laborers' wages.

The BPS announced GDP growth of 5.17 percent last year to Rp 14.84 quadrillion, compared to 5.07 percent growth in 2017. With the figure, per capita income is $3,927. Household spending remains the biggest contributor to GDP with 55.74 percent. (bbn)