Indonesia : Supply-side contributions to growth, Trade indicators
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The services and manufacturing sectors were key drivers from the
supply side. Services expanded by 7.7%, contributing more than half of
total growth (Figure 3.24.3). Telecommunications continued to re...
cord
double-digit expansion owing to buoyant demand for mobile telephone
and internet services.
Growth in manufacturing decelerated to 5.7%, reflecting weaker
export markets. Mining output was lackluster, showing growth of just
1.5%, largely a result of declining crude oil extraction. Oil production fell by 42,000 barrels a day to 860,000 barrels a day last year, the outcome.of aging oil fields and low investment over many years. (A decade ago
production was more than 1.1 million barrels a day.) Construction
recorded solid expansion of 7.5% in 2012. A good harvest of food
crops lifted growth in agriculture to 4.0%. Paddy production rose by
5.5% to 68.9 million tons, which generated rice surpluses estimated at
5.7 million tons.
Merchandise exports fell by 6.3% in US dollar terms (Figure 3.24.4),
weighed down by sagging demand in major markets and lower prices
for export commodities. Exports of manufactured goods declined by
6.7%. Shipments of commodities including coal and palm oil fell when
measured by value despite higher export volumes. Merchandise imports,
in contrast, rose by 8.3%, reflecting buoyant fixed investment, which
requires imported capital goods, and growth in imported inputs for the
expanding manufacturing industries. Imports of consumption goods were
virtually flat, discouraged by a depreciating rupiah.
These developments—lower exports and higher imports—reduced
the trade surplus by 76% to $8.4 billion. The current account shifted into
deficit, equivalent to 2.8% of GDP, the first deficit since 1997. This put
downward pressure on the rupiah, which depreciated by 8.0% against the
US dollar in 2012.
Source : Asian Development Outlook
database; CEIC Data Company (accessed 1 March 2013) Asian Development bank ( Indonesia: Reforms for Resilient Growth) http://www.adb.org/publications/indonesia-reforms-resilient-growth?ref=countries/indonesia/publications
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