Back on the Expansion Path

The Indonesian economy grew at a slower rate in this year’s second quarter than in the first quarter. Will it decline into a recession?

September 1, 2009

Purbaya Yudhi Sadewa*

THE Indonesian economy grew 4 percent in the second quarter of the year, driven primarily by household (4.8 percent) and government spending (17 percent). As forecast, exports fell 15.7 percent while investment grew 2.7 percent.

Transportation and communication are the sectors which grew most rapidly (17.5 percent), followed by electricity, gas and water (15.4 percent). The impact of global recession was reflected in the

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