Household Consumption Records Highest Growth Throughout Jokowi's Presidency

Household consumption (RT) expenditure remains a crucial component of the Indonesian economy. Data from the Central Statistics Agency (BPS) shows that, structurally, RT consumption expenditure contributed Rp 1,394.7 trillion, or 55.43%, to the total GDP in Q2 2018, which amounted to Rp 2,603.7 trillion.

Gross Domestic Product (GDP) based on constant 2010 prices grew by 5.14% year-on-year (YoY) during the second quarter of this year. This achievement is the highest throughout the Joko Widodo (Jokowi)-Jusuf Kalla (JK) administration. Compared to the previous quarter, RT consumption in Q2 2018 also grew by 1.54% (QtQ). Meanwhile, growth for the first half of 2018 reached 5.05% compared to the first half of the previous year.

As is known, the national economy grew by 5.27% in Q2 2018 compared to Q2 of the previous year. Based on the Gross Regional Domestic Product (GRDP) per island, Java's contribution remains the highest, reaching 58.61% of the total. Sumatra follows with a contribution of 21.54%, and Kalimantan with 8.05%.

(Read Databoks: Why is Household Consumption Important for the Economy?)