National Development Planning Agency (Bappenas) Records Shift in Public Spending

Public consumption for transportation and communication needs increased the most from 2008 to 2018 compared to other needs. According to records from the Ministry of National Development Planning/Bappenas, this increase indicates a shift in public spending patterns from non-leisure components (basic needs such as food and beverages) to leisure components (recreation).

In its release issued a few weeks ago, Bappenas stated that the role of transportation and communication consumption increased from 23.4 percent to 24.7 percent. Meanwhile, the role of restaurant and hotel consumption increased from 9.1 percent to 9.3 percent. Public consumption that decreased was for food and beverages, falling to 36.7%.

The increased allocation of spending for recreational needs is in line with the growth of internet users, which has reached 112 million. The increase is also reflected in online transactions which have grown by more than two digits year-on-year (YoY). Quoting statistics from "We Are Social," the Ministry of National Development Planning stated that the Indonesian e-commerce consumer goods market grew significantly, reaching US$7.06 billion in 2017.