Slower domestic consumption, impacting the sluggishness of the business world, caused Indonesia's economic growth in 2017 to fall below the 2017 Revised State Budget (APBN-P) target. Cumulatively, Indonesia's Gross Domestic Product (GDP) grew by 5.03% in the first three quarters of 2017, compared to the targeted 5.2%. For 2018, Indonesia's economy is targeted to grow by 5.4%.
Since 1961, the Indonesian economy has generally experienced growth, with only two periods of contraction. The highest GDP growth was recorded in 1968, at the beginning of the New Order era, reaching 10.92%. During the reform era, the highest economic growth was recorded in 2007, at 6.35%.
However, the Indonesian economy also experienced contractions or negative growth, namely in 1963 during the Old Order era and in 1998 during the Asian financial crisis. The crisis, coupled with riots throughout the country, caused the Indonesian economy to contract sharply by -13.13%.
(Read Databoks: 2018, Indonesia's Economy Projected to Grow 5.3 Percent)