Industry Overview

The Contributions of the industry for Indonesia’s economic growth

Nearly 90% of Indonesia's economic growth comes from the consumption and investment
sectors. The role of this consumption will indirectly have an impact on increasing Indonesia's GDP. This is
expected to reduce the burden on government spending. During the pandemic, the portion of people's
food and beverage consumption increases drastically because it is a priority need. The share of
household consumption based on the expenditure group for food and beverages other than restaurants
has contributed 40,81% to the first quarter of 2020. This figure has increased compared to the first
quarter of 2019 which was only 39,22%. Household consumption of housing and equipment also
increased in the first quarter of 2020 to 12,94% compared to the previous year which was only 12,87%.
Based on estimates from the ministry of finance, Indonesia's economic growth in 2020 is largely
determined by achievements in the third quarter. Realization of state revenue up to May 31, 2020,
reached Rp664,3 trillion or 37% of the revenue target in accordance with the provisions of Presidential
Decree 54 of 2020 but contracted by 9% compared to 2019. State expenditure revenue reached Rp843,9
trillion or 32,3%, but contracted by 1,4%. So it can be concluded that the deficit realization reached IDR
179,6 trillion or 1,1% of GDP.