JAKARTA. Indonesia's economic growth stagnated at 5.01 percent year on year (yoy) in the second quarter compared to the first quarter, the Central Statistics Agency (BPS) announced on Monday in Jakarta.
Private consumption, which accounts for more than half of the country's gross domestic product (GDP), grew by 4.95 percent yoy, slightly higher than the 4.94 percent recorded in the first three months of the year.
"This is evidence that our consumption continues to grow strongly," BPS head Suhariyanto told Monday's press conference.
The people's purchasing power has become a topic of current public debate, following reports from businesspeople that their sales increased insignificantly during the Idul Fitri holiday season when consumption usually peaked, sparking concerns about overall economic growth.
Government spending growth, meanwhile, contracted to -1.93 percent yoy compared to 2.68 percent in the first quarter due to Idul Fitri bonus disbursements in July, moving back a month from June last year, Suhariyanto added.
Exports and imports grew slowly in the second quarter at 3.36 percent yoy and 0.55 percent yoy, respectively.
Export was the savior of economic growth in the previous quarter, as it grew the highest at 8.04 percent.During the April-June period, it was the investment component that jacked up the country's economic growth, as it expanded by 5.35 percent yoy versus 4.78 percent in the first quarter. (Prima Wirayani)
