Kedutaan Besar Republik Indonesia
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Indonesia Now among Countries with US$1tn GDP

TEMPO.COJakarta - CIMB Niaga chief economist Adrian Panggabean said Indonesia enters 2018 with a new status. The country is now one of the world’s nations that has a gross domestic product (GDP) value of US$1 trillion.

In his review, Adrian wrote that there are only 16 out of 180 countries in the world that have an output above US$ 1 trillion.

As the world’s 15th largest territory and 4th largest population, the GDP value will support Indonesia in its efforts to strengthen its geo-economic and geopolitical positions.

“Last year, the GDP grew 5.1 percent, driven mainly by public consumption and investments,” he said last week.

Investments are also growing at a steady rate, driven by investments in the infrastructure and machinery sectors.

“Investment in 2017 grew at a rate of around 5.8 percent; much faster than in 2016,” he said.

For 2018, Adrian estimates Indonesia’s GDP to grow by 5.2 percent. He said there aren’t many growth catalysts expected to emerge this year. In terms of the state budget posture—with an estimated fiscal deficit of 2.3 percent to the GDP, the 2018 State Budget looks more consolidative and populist as opposed to being expansive and populist.