Publication: Indonesia Economic Quarterly, June 2019: Oceans of Opportunity
Date
2019-06
ISSN
Published
2019-06
Author(s)
World Bank
Abstract
In 2018, Indonesia’s coordinated and
prudent macroeconomic policy framework underpinned
steadyeconomic growth, amid global volatility and several
natural disasters. Real GDP growth strengthened to 5.2
percent yoy in 2018 from 5.1 percent in 2017. Growth
decelerated only slightly in Q1 2019, to 5.1 percent yoy.
Quarterly GDP growth has been broadly stable, remaining
within a narrow range of 4.9-5.3 percent yoy for 14
consecutive quarters. The drivers of growth shifted in Q4
2018 and Q1 2019, as investment growth decelerated from
multi-year highs, and both private and government
consumption picked up. Investment slowed because of
inventory destocking and easing fixed investment growth due
to delays in new public projects in response to current
account concerns, political uncertainty ahead of the general
elections, and deteriorating prices of thecountry’s key
commodity exports and a maturing investment cycle in the
mining sector. On the other hand, growth of private and
government consumption gained on stronger spending by
political parties and civil servant bonuses. Private
consumption was also supported by low inflation and abuoyant
labor market. Indonesia’s oceans can be leveraged to make a
larger contribution to the economy, both through higher
revenues from tourism and fisheries and by enhancing
resilience to natural disasters and climate change. This
edition therefore discusses the importance of the maritime
economy to Indonesia’s economic development and presents the
challenges and opportunities the country faces in leveraging
the maritime economy for greater prosperity.
Citation
“World Bank. 2019. Indonesia Economic Quarterly, June 2019; Indonesia Economic Quarterly, June 2019 : Oceans of Opportunity. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/31993 License: CC BY 3.0 IGO.”