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Country Report Indonesia February 2011
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HTMLEconomic performance: Indonesia's economy grows at the fastest pace in six years
Indonesia's economy grew at the fastest pace in six years in the fourth quarter of 2011, with real GDP expanding by 6.9% year on year, according to the national data provider, Statistics Indonesia (BPS). Growth was broadly based, with all of the main components of GDP making positive contributions. Private consumption expenditure, the most important component of the economy, accounting for around 60% of nominal GDP, fuelled the fourth-quarter expansion. Although private consumption growth slowed in the period, to 4.4% year on year from 5.2% in the third quarter, it still contributed 2.6 percentage points to the economy's overall growth. Government consumption expanded by 8.3% year on year, up from 4.3% in the previous quarter, as state ministries rushed to spend their budgets before the end of the year, making a 1-percentage-point contribution to growth. Meanwhile, gross fixed investment expanded by 8.6% year on year, down from 9.3% previously, and contributed 2.1 percentage points to growth. It was not only domestic demand that supported the economy's fourth-quarter expansion, net exports also made a significant contribution (1.6 percentage points), with exports of goods and services rising by 16.2% year on year. Imports were up by 16.9%.
| Gross domestic product by expenditure | ||||||||
| (constant 2000 prices; % change, year on year unless otherwise indicated) | ||||||||
| 2009 | 2010 | |||||||
| 2008 | 2009 | 4 Qtr | 1 Qtr | 2 Qtr | 3 Qtr | 4 Qtr | 4 Qtra | |
| Private consumption | 5.3 | 4.9 | 4.0 | 3.9 | 5.0 | 5.2 | 4.4 | 0.3 |
| Public consumption | 10.4 | 15.7 | 17.0 | -8.8 | -8.9 | 4.3 | 8.3 | 38.2 |
| Gross fixed investment | 11.9 | 3.3 | 4.2 | 7.8 | 7.9 | 9.3 | 8.6 | 1.3 |
| Exports of goods & services | 9.5 | -9.7 | 3.7 | 20.0 | 14.5 | 9.6 | 16.2 | 12.8 |
| Imports of goods & services | 10.0 | -15.0 | 1.6 | 22.6 | 18.4 | 12.2 | 16.9 | 9.6 |
| GDP | 6.0 | 4.6 | 5.4 | 5.7 | 6.2 | 5.8 | 6.9 | -1.5 |
| a % change, quarter on quarter. | ||||||||
| Source: Statistics Indonesia (BPS). | ||||||||
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For the year as a whole, Indonesia's economy expanded by 6.1%, up from 4.5% in 2009, exceeding the official growth target of 5.8%. It was also the fastest pace of annual growth since 2007. Private consumption expanded by 4.6% year on year, down from 4.9% in 2009; government consumption grew by 0.3%, compared with an expansion of 15.7% in 2009; and gross fixed investment expanded by 8.5%, up from 3.3% in 2009. Meanwhile, exports of goods and services rose by 14.9% year on year, compared with a contraction of 9.7% in 2009, and imports were up by 17.3%, following the previous year's contraction of 15%. One notable development in 2010 was that Indonesia's nominal GDP per head (based on BPS's population estimates) exceeded US$3,000 for the first time, lifting the country into the world's low-middle-income group of economies.
