TEMPO.CO, Jakarta - The World Bank reported that Indonesia`s imports in Q2 this year grew two-folds compared to its exports.
“The net export underwent a contraction that in general, burdened the economic growth,” said World Bank’s chief economist for Indonesia Frederico Gil Sander in Jakarta on Thursday, Sept. 20.
According to Frederico, the rise of crude oil prices and the continuing investment of tools caused the import’s nominal to grow even faster than the exports. This reduced the goods trade surplus.
World Bank’s September report on Indonesia’s economy suggests that the country’s direct investment up to 2018’s second quarter had reduced to 1.7 percent from its gross domestic product if subtracted with the offshore investments.
“It is not enough to fund the current account deficit since 2018’s first quarter,” Said Frederico.
In general, the World Bank recorded that Indonesia’s economic growth at 5.3 percent was caused by the high domestic demands. Higher employee spending and subsidy in this period drove the private sector and government to grow at a much faster rate, Frederico said.