Monday 31 August 2009

Q2 Growth Welcomed, but Downturn Still Looms: BPS

Jakarta's economy grew by 1.4 percent during the second quarter of this year, with communications and transportation sectors leading the way, recent data from the Jakarta Central Statistics Agency (BPS) revealed Monday.
"The growth was still below that of the entire nation," BPS chief Agus Suherman said, adding that the national economy grew 2.3 percent during the same period.
However, the city's income was significantly higher than that of Indonesia. The city's year-on-year income grew 5.01 percent, compared to the rest of Indonesia's 4 percent.
Cumulatively, courier services and communications posted the highest gains, at 15.42 percent, while construction and services grew by 6.40 percent and 5.74 percent, respectively.
However, the manufacturing and financial sectors have been declining since the beginning of the year, and will continue to fall. The growth of the services sector might mean more expansion in the IT sector since it does not need a very big workforce to get ahead.
These small businesses, however, absorb far less workers than large manufacturers, and most of their recruitment is organized through family or friends.
Businesses thriving in the hospitality sector, such as hotels and restaurants, might offer a better view of the services sector.
Government spending increased by 2.34 percent during the second quarter, compared to the -1.83 percent growth in the previous quarter, the BPS said.
"But the government needs to be quicker in spending its budget, to produce more projects and consequently more jobs for the community," Agus said, before citing the administration's habit of delaying spending until the third or fourth quarter of the year.
Jakarta is targeting 4 percent growth by the end of the year, but the current downturn may prevent it from achieving this goal, Agus said. (dis)
Source: The Jakarta Post , 12 Aug.09

No comments: