Royal Institute of Traditional Arts implements Saudi-Chinese cultural exchange program    Localization in Saudi military industries rises to 19.35%    Logistics park for vehicles worth SR300 million to be set up at Dammam port    Commerce Ministry recalls 6,500 Genesis cars due to risk of fire    HONOR KSA expands its presence with new flagship Experience Store in Riyadh HONOR's first flagship store in KSA provides visitors with a premium experience, exciting offers and free services    Saudi, Iranian foreign ministers discuss Oman-mediated talks with US    Prince Sultan University launches first bachelor's program in language and media    Al-Falih: Eastern Province hosts 700 investment opportunities worth SR330 billion    Putin announces three-day Russian ceasefire in Ukraine from 8 May    Crown Prince donates SR1 billion to support housing for eligible families    Pakistani military says it killed 54 militants attempting to cross border from Afghanistan    Suspect charged after Vancouver car ramming leaves 11 dead    Eight hundred Houthi targets hit after weeks of strikes, says US    Rock & Roll Hall of Fame picks Outkast but not Oasis    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Domestic sector drives Indonesia
Published in The Saudi Gazette on 11 - 02 - 2013

JEDDAH – Indonesia's economic growth rate was resilient in the fourth quarter. It eased slightly from 6.2 percent year-on-year (YoY) to 6.1 percent, an analysis from Asiya Investments, an investment firm specializing in Emerging Asia investments, said Sunday.
The biggest drag on growth was the strong rebound in imports, which grew 14.5 percent from the third quarter. However, this is a sign that the domestic economy is still robust, as private consumption and investments continue to drive the economy. For instance, investments grew sequentially for the third quarter in a row, and auto sales set a record of 1 million vehicles in 2012. This is a clear sign of the transformation of the economy, as higher internal demand more than offset falling exports, which have been weakening throughout 2012, Camille Accad, an economist at Asiya Investments who prepared the report noted.
The fall in export growth numbers was already expected at the beginning of the year due to industrial policy measures. Indonesia, whose main exports are commodities, imposed export taxes on raw materials such as unprocessed metal ores with the goal of forcing its industry to move up on the supply chain, she added. With commodity prices overall lower than in 2011, and global demand still weak, exports of the country's main materials steeply fell. However, exports showed signs of a gradual recovery in the fourth quarter, as they grew 6.9 percent from the previous quarter.
Interest rates have been set at a historical low, at 5.75 percent since last year, and this has helped prop up domestic consumption and private investments. Accordingly, credit to the private sector is still growing above 20 percent YoY. Given the current global environment, the current growth levels are relatively high and resilient, especially as the economy is undergoing a structural shift. However, one of the main risks for this year is inflation, which stood at 4.6 percent in January, up from 4.3 percent the previous month.
Moreover, the study added that private consumption is a strong driver of growth in the domestic-oriented nation, but exports have traditionally contributed more to GDP growth.
Growth is likely to remain above 6 percent in 2013. “While the government is expected to continue to enforce structural reforms this year, we still expect some strong investment inflows in the growing economy. A ban on all raw materials is coming up in 2014, and major companies are already setting up mines and processing plants in order to benefit from the lack of competitiveness in the processing industry. The rising minimum wage will also support the growing middle class and drive consumption,” Accad said. — SG


Clic here to read the story from its source.