TEMPO.CO, Jakarta - Economist Hendri Saparini said that the government needs to be cautious of the slower growth of household consumption considering that Indonesia’ gross domestic product (PDB) receives most of its contribution from consumption.
"As a result, when consumption slows down, we need to be cautious," Hendri said in Jakarta on Saturday (12/8).
The member of National Economic and Industry Committee (KEIN) mentioned that the deceleration of household consumption could be seen from the beginning of the third quarter of 2016.
"Starting from the third quarter of 2016, the consumption consistently and gradually grew. The rate of the growth is modest from 4.5 percent to 5 percent," she continued.
Hendri explained that the government needs to identify which class of income had a decrease in consumption, whether it is from the lower income group or the upper income group.
"Both groups deserve caution. If the decrease was at the upper income group, it is not as significant as the decrease of consumption in the lower income group. If the 40 percent lower income class had a consumption slowdown, it required serious attention," she said.
ANTARA