Investment to spur economy in second semester: Bappenas

Jakarta (ANTARA News) – The National Development Planning Board (Bappenas) is expecting to witness greater contribution from the investment sector in the second semester of 2017 to spur higher economic growth.

“In terms of expenditure, it is investment that should be encouraged. In the second semester, more government investment would be materialized. Private investment would also begin to improve,” Bappenas Director for Macro Planning and Statistical Analysis Amalia Adininggar Widyasanti stated here, Tuesday.

Earlier on Monday, the Central Bureau of Statistics (BPS) in its report had stated that the countrys economic growth in the second quarter of the year was relatively stagnant, at 5.01 percent, as compared to the first quarter of 2017.

Widyasanti noted that economic growth during the period was mainly supported by the service sector.

Growth in the transportation sector has recorded an increase to 8.4 percent as a result of Eid al-Fitr, with an 18 percent increase in railway transportation and 11.9 percent rise in air transportation.

The information and communication sector has recorded a relatively high growth of 10 percent.

“People tend to make online transactions, sending Eid al-Fitr messages via sms or Whatsapp, and other forms of social media have contributed to increased growth in the information and communication sector,” Widyasanti remarked.

The BPS has recorded that performance in investment, or gross permanent investment, has contributed to economic development in the second quarter of 2017 to grow to 5.01 percent (year-on-year).

The gross permanent investment was spurred by investment in buildings, vehicles, and other equipments.

Investment in buildings during the period has continued to grow in line with increased activity in the construction sector, including development of infrastructure.

In addition, investment was supported by the governments capital expenditure in the 2017 state budget, amounting to Rp35.7 trillion, or an increase of 4.36 percent, as compared to the same period last year.

Source: Antara News