Gross Fixed Capital Formation Growth Slows to 3.74% in Q3 2021

Gross Fixed Capital Formation (GFCF) value grew by 3.74% in Q3 2021 compared to Q3 2020 (year on year/yoy). Based on data from the Central Bureau of Statistics (BPS), this growth slowed compared to Q2 2021, which recorded 7.54% (yoy).

GFCF, or physical investment, is the measure of the addition and subtraction of fixed capital goods for production needs in a particular economic activity over a specific period.

In detail, the GFCF component of machinery and equipment recorded the highest growth, at 11.54% (yoy). This was followed by other equipment, which grew by 9.97% (yoy). Similarly, the vehicle and building components grew by 9.01% (yoy) and 3.36% (yoy) respectively.

Meanwhile, the cultivated biological resources (CBR) component experienced a contraction of 6.21% (yoy) in Q3 2021. Similarly, intellectual property products also experienced negative growth of 1.88% (yoy).

GFCF is the second largest contributor to national Gross Domestic Product (GDP) after household consumption. GFCF contributed 1,316.9 trillion Rupiah (30.45%) to Indonesia's total economy of 4,325.4 trillion Rupiah in Q3 2021. Household consumption contributed 2,296.4 trillion Rupiah (53.09%).