Indonesia's Economy Grew 5.02 Percent in 2016

The Central Statistics Agency (BPS) reported that Indonesia's economy grew by 5.02 percent in 2016. This figure is higher than the revised 2015 figure of 4.88 percent. In the fourth quarter of 2016, the domestic economy grew by 4.96 percent year-on-year (YoY). However, compared to the previous quarter, the Indonesian economy contracted by 1.77 percent.

Growth occurred across all sectors. However, this figure is still below the target set in the 2016 Revised State Budget (APBN), which was 5.2 percent. The slowdown in the global economy and cuts to the state budget resulted in growth below target.

This below-target growth was due to an economic slowdown in the fourth quarter of 2016. BPS Head Suhariyanto stated that one of the reasons for the low economic growth in the fourth quarter of 2016 was lower government spending compared to the same quarter of 2015. Government spending realization was only Rp 549 trillion, or 26.36 percent of the budget, a lower percentage compared to the fourth quarter of 2015.

(Read Databoks: [End of 2016, Indonesian Economy Slows by 1.7 Percent](http://databoks.katadata.co.id/datapublish/2017/02/06/akhir-2016-ekonomi-indonesia-melambat-17-persen))