Highlights of Current Account Deficit
Indonesia’s 3Q18 GDP grew by 5.17% y-y, lagging from 2Q18 growth of 5.27% y-y. On a quarterly basis, Indonesia’s GDP grew by 3.09%. On the expenditure side, the major factor driving GDP growth was the higher pace of investment and soaring government spending. Based on the business sector, the potent driver for economic growth was the improvements in various kinds of business sectors, particularly in mining and manufacture sectors.
Domestic Investment Effects
3Q18 investments grew by 6.96% y-y, higher than 2Q18 growth of only 5.86% y-y. 3Q18 growth was mainly attributable to the robust domestic investment, successfully buffering the foreign investment. The Investment Coordinating Board (BKPM) posted 3Q18 Domestic Direct Investment to rocket by 30.5% y-y to IDR84.7 trillion, followed by a stark decline of 20.2% y-y to IDR89.1 trillion in the Foreign Direct Investment (FDI).
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