Top 10 Provinces with the Highest Contribution to Gross Fixed Capital Formation in Quarter III 2021

Several Indonesian provinces contribute significantly to Gross Fixed Capital Formation (GFCF) as a component of Regional Gross Domestic Product (RGDP). Based on data from the Central Statistics Agency (BPS), North Maluku recorded the largest contribution of the GFCF component to the RGDP from the expenditure side, reaching 64.19% in the third quarter of 2021.

This GFCF contribution is larger than household consumption expenditure, which only reached 44.55%. The next province with the largest GFCF distribution to RGDP is East Nusa Tenggara at 49.72%, followed by Central Sulawesi at 45.62%, Riau Islands at 43.73%, and Papua at 42.89%.

Central Kalimantan also contributed significantly, with GFCF accounting for 42.5% of its RGDP. Southeast Sulawesi follows with 40.82%, then Bengkulu at 40.24%, and South Sulawesi and West Nusa Tenggara at 38.03% and 37.79% respectively.

Gross Fixed Capital Formation (GFCF) refers to expenditure on capital goods with a lifespan of more than one year and are not considered consumer goods. GFCF includes residential and non-residential buildings, other structures such as roads and airports, and machinery and equipment.

Furthermore, GFCF is an indicator of the extent to which investment contributes to a region's economy.