BANDUNG-Economic growth in the fourth quarter of 2018 is expected to increase compared to the third quarter of 2018 which was driven especially from the domestic side. These estimates are supported by various survey results such as the Consumer Survey, Business Activity Survey and Liaison to various companies.
To note the economic growth rate (LPE) of West Java in the third quarter of 2018 is still driven by domestic demand. West Java's economic growth was recorded at 5.58% (yoy) or slowed compared to the second quarter of 2018 (5.65%, yoy).
Bank Indonesia West Java Representative Doni P. Joewono said household consumption, LNPRT consumption and government consumption are expected to increase along with increasing public demand ahead of year-end holidays.
"In addition, preparations for the 2019 General Election will also encourage the consumption of both the private sector and the government," he said Wednesday at the West Java BI office on Wednesday (11/07).
In terms of business sector, the performance of the processing industry is also predicted to be driven by increasing domestic demand. On the other hand, there is still potential for exports, especially to the United States as the US economy continues to improve.
Trade performance is also expected to increase in line with public demand towards the end of the year.
For the whole of 2018, the economic growth of West Java is estimated to increase compared to 2017. The estimated drive mainly comes from the domestic side, especially the consumption of non-profit institutions and the government.
The implementation of simultaneous regional elections in 16 regencies / cities encouraged an increase in the consumption of LNPRT and government consumption in 2018. In addition, the holding of the Asian Games for several sports held in West Java contributed to the economic growth of West Java in 2018.
From the business side, the processing industry is still the main driver of the growth of the economy of West Java. This is to meet the high domestic demand in 2018.
In addition, the construction sector is also expected to increase both construction originating from government projects and for residential needs. The high growth in housing loans amid the relaxation of LTV provisions is expected to have a positive impact on the increase in the business field. Jo