Indonesia's economic growth slows down in Q3, more stimulus required

Source: Xinhua| 2019-11-05 17:34:30|Editor: Xiang Bo
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JAKARTA, Nov. 5 (Xinhua) -- The Indonesian economy has been moving at the weakest pace in the third quarter this year, emphasizing the need of more economic stimulus to prop up the current insipid growth.

The National Bureau of Statistics on Tuesday issued a release on the country's gross domestic product (GDP) growth of 5.02 percent in three months, which ended in September on a 12-month basis, slipping from that in the presiding quarter of 5.05 percent.

Head of the bureau Kecuk Suhariyanto said that the current global economy still weathers a full of uncertainty. "This brings downside risks to the advanced and emerging nations, including Indonesia."

Consumption making up over half of the Indonesian economic growth has logged a steady pace of 5.01 percent from June to September compared with that of in the same period of last year, according to data from the bureau.

Indonesia's exports also nudged lower recently as weakening global growth dragged down demands and prices of Indonesia's exported products and economic activities. Importation of capital goods and raw materials were also drifted lower, according to the bureau.

Meanwhile, investment rallied a 15.4 percent higher in the third quarter, year over year, and foreign direct investment came in 17.8 percent higher in the period.

To insure exports from a further decline, the Indonesian government will incentivize business sectors to motivate them in expanding markets of their products offshore, former Indonesia's Trade Minister Enggartiasto Lukita has said.

Bank Indonesia (the Indonesian central bank) has aggressively ratcheted down its benchmark interest rate by 100 basis points since July and heralded to further trim the rate in months to come to shore up the flagging growth.

Still, in the fiscal side, the country's state budget logs a deficit of 2.2 percent of the gross domestic product this year due to a short fall in state's revenue, said Finance Minister Sri Mulyani Indrawati. Issuance of global bonds will be likely to be taken into account.