Friday, 8 January 2016


In 2016, the prospect of national economy performance was predicted to face heavy challenges such as uncertainty in money market and global economic prospect especially China as one of Indonesia’s economic growth in 2016 was predicted at 5.5%. Thin was data quoted from Financial Report and state Budget 2016 obtained on Friday (26/8).

In term of expenditure, household consumption was still the main sustaining factor of economic in 2016. The Government was also striving to strengthen people’s purchasing power through Zero Income Tax for, Rp.24.3 million to Rp.36 million. The effort to increase people’s purchasing power was also made complete with National Health Insurance and Labor Insurance especially marginal people and informal workers. Under The circumstances growth of house hold consumption was projected at 5.2 in 2016.

Furthermore the PMTH component which encompassed around 32% in GDP of 2016 was predicted to grow by around 7.3%. Strengthening of PMTB growth performance in 2016 was thanks to external factor which was conducive to investment, betterment of business climate increased Government’s infra structure and policy in tax incentives giving.

Import-export performance in 2016 was predicted to improve in line with better global economic conditions and increase of some commodity prices. Bettered economy in some business counterpart countries like the USA was predicted to jack up demand and Indonesia’s export performance. In promoting international trade activities, the Government would explore new export market, reduce barriers in the export destination countries and improve export facilities and increase demand for Indonesia products.

Besides, the Government was striving to encourage participation in the industrial sector to increase added value in global products which were export orientated and other products like electronic and furniture to countries supposedly having economic recovery like the USA and India,

On the import side, Government’s policy was designed to drum up investor to produce components normally imported, which would reduce production cost at home and narrow down trade deficit. Trading facilities by on-line would also be developed by improving services and accelerate permit issuance procedure. In view of the said Government’s strategy, export performance in 2016 was predicted to grow by 2.5% and import would grow by 2.2%.

Economic growth in 2016 would predictably sustained by development in the sectors of processing, agriculture, trading, and construction which encompassed around 57% of total GDP. The Industrial processing sector which contributed around 21% of total GDP was predicted to grow by around 5.7% sustained by increasing global and domestic demand.

Meanwhile the agriculture sector which contributed around 13.7% to GDP was predicted to grow by 4.2% in 2016. In the effort to promote the agriculture sector toward national food sovereignty, the Government had taken several measures, among others plantation irrigation system, dams and reservoirs, managing agricultural machines and distributing subsidized fertilizers. By 2016 the Government would continue to build new dams.

The sectors of wholesaler and retail, motorcar and motorcycle repairs contributed 13% to GDP, in 2016 was predicted to grow by 4.8% driven by increasing trading activities: export, import and inter regional trading. Some factors which were among others: betterment of logistic infra structures like roads, harbors and warehousing, minimizing of dwelling time of containers at seaports, and betterment of distribution system of essential needs, improving business climate, and increasing consumers protection.

Other sectors expected to contribute significantly to economic growth 2016 was the construction sector. In 2016, the Construction Sector was predicted to grow by 7.0 % especially being uplifted by infra-structure development, which had started in 2016 the construction sector was expected to grow by 7.0% especially being uplifted by infra structure since 2015 including35 GW powerhouse for 5 years, the one million homes project for low income group and rehabilitation of reservoirs/rs and irrigation.

The effort to enhance national economy was still obstacle by problems in the mining sector. In 2016 the mining sector was expected to grow by 0.2% in line with growing investments in smelter building.

Beside the above premium sectors, other sectors which were expected to constantly grow and support national economy in 2016 were transportation and warehousing, accommodation and food & beverages, financial service and insurance. (SS)

Business New - September 2, 2015

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