Government Acknowledges Economic Growth in Q2 / 2017 Not in Accordance

Coordinating Minister for the Economy Darmin Nasution claims the realization of economic growth in the second quarter of 2015 of 5.01 percent is not bad. 

But he acknowledged it was not in line with government estimates. 'Overall, our economic growth is not bad although not as good as expected,' he said at the Coordinating Ministry for Economic Affairs, Jakarta, Monday (08/08/2017). 

From the sources of growth, said Darmin, economic growth in the second quarter of 2017 is still driven by investment, household consumption and exports, which has so far been growing positively. Only government consumption is minus 1.93 percent. 

However, he said, the drop in government consumption is not due to capital expenditure but due to delays in the disbursement of the 13th salary and routine goods expenditure due to budgetary efficiency. 

'If if it (government consumption) rises only, then the economic growth rate of 5.1 percent is definitely possible,' said Darmin. 

The household consumption level of 4.94 is still considered to be growing positively by the government. Although, smaller than the same period last year which reached 5.07 percent. 

Meanwhile, from the side of the sector, the government also assessed the growth of agriculture, construction and services sector grew quite well in the second quarter of 2017.