Thursday, 22 Augst 2019 | 07:49 WIB

Indef: Actual Spending Not in Line with Govt’s Economic Growth Target

Indef: Actual Spending Not in Line with Govt’s Economic Growth Target (illustration: bolmut)

JAKARTA, NETRALNEWS.COM - Bhima Yudhistira Adhinegara, researcher at the Institute for Development of Economics and Finance (Indef), says that actual spending is very low compared to the government's third quarter economic growth target of 5.2 percent.

"The growth in the third quarter is below expectations, with the government spending low and the industrial sector growing," Bhima told reporters in Jakarta (11/10/2017).

According to Bhima, the government spending that was expected to drive household consumption only grew 3.46 percent year on year (YOY). Meanwhile, household consumption ran flat at 4.93 percent.

The country’s exports grew by 17.2 percent (YOY). However, imports also rose significantly by 15.09 percent (YOY). According to Bhima, it proves that the economic growth of its quality is decreasing.

"Export should rise while import remains low,” he said.

The only hope is Gross Fixed Capital Formation (PMTB) investments that are up 7.11 percent (YOY). The hope of direct investment can still survive to grow 7 percent until the end of the year.

"Looking at these conditions, the projected economic growth in 2017 is 5.05 percent or below the previous expectation of 5.2 percent," Bhima added.