REPUBLIKA.CO.ID, SURABAYA -- East Java Governor Soekarwo said the province's economy grew 5.57 percent in the second quarter of 2018. It was slightly stronger than a growth of 5.52 percent in the previous quarter.
"The largest contribution to the Gross Regional Domestic Products (PDRB) came from three sectors - manufacturing industry, wholesale and retail trade, motorcycle and car repairs and agriculture, forestry and fisheries respectively contributing 29.09 percent, 18.47 percent and 12.37 percent," the governor said.
Soekarwo delivered the fact when accompanying Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan in a business talk "Current Global Economy in Indonesia" with Chinese business leaders in Surabaya, East Java, on Thursday. He described trade performance of East Java as quite satisfactory with a surplus of Rp57.89 trillion with net inter-region trade valued at Rp101.58 trillion.
He said investment in East Java was valued at Rp7.93 trillion in foreign investment (PMA) and Rp16.67 trillion in domestic investment (PMDN) in the first six months of the year. Non facility investments were valued at Rp71.35 trillion bringing the total investment to Rp95.95 trillion in the first half of the year.
The figures showed that altogether East Java recorded encouraging investment performance amid economic uncertainties, he said.
Luhut said the country's economic development is still on the right track as indicated by the decline in poverty ratio, economic gap, and good acceleration of economic growth.
"The economy grew 5.27 percent in the second quarter of 2018 or the highest since 2014. The performance was recorded amid the global economic slowdown and uncertainties . This shows good economic resilience," Luhut said.
He said the challenge in global economic uncertainties is growing still with the U.S. Central Bank raising its fund rate and escalation of U.S. Chinese trade war. "This causes U.S. dollar strengthening over almost all currencies of developing economies including rupiah, but the rupiah weakening is still normal," he said.
He said the government has taken strategic steps to strengthen rupiah by ruling the use of Biodiesel 20 fuel for Public Service Organization (PSO) and non PSO diesel oil, and promoting the tourism sector to draw foreign exchange.
"In addition, there is regulation requiring an increase in the sue of local components , and larger government spending to revive domestic economy," he said.
Biodiesel 20 is a mixture of palm oil making up 20 percent and diesel oil making up 80 percent.
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