Indonesia’s per capita income rose 64 percent in the three years to last year as economic growth in more than a third of the country’s 33 provinces outstripped the national pace, President Susilo Bambang Yudhoyono said.
Per capita income increased to US$1,946 last year from US$1,186 in 2004, Yudhoyono said in a speech before the nation’s Regional Representative Council in Jakarta yesterday. Yudhoyono, who is facing election next year, took office in October 2004.
Indonesia’s economy expanded 6.4 percent in the second quarter from a year earlier, with 12 provinces exceeding that growth, Yudhoyono said. Provinces such as Central and South Kalimantan, Central Sulawesi and the Riau Islands recorded growth of more than 8.5 percent, he said.
A jump in commodity prices, driven by oil climbing to a record US$147.27 a barrel last month, boosted growth in Southeast Asia’s biggest economy, which ranks among the world’s largest coal, palm oil and tin exporters.
Sales of vehicles last month surged 58 percent from a year earlier even as inflation soared to a 22-month high of 11.9 percent. Private consumption accounts for about two-thirds of the Indonesian economy.
“There may be a bit of a slowdown in growth in the second half of this year given that oil prices have come down,” said Juniman, a senior economist at PT Bank Internasional Indonesia, who uses only one name.
Even so, “the government’s economic-growth target of 6.2 percent looks achievable because consumption remains solid,” he said.
Oil futures have fallen 18 percent from their July 11 record. Bank Indonesia Governor Boediono said on Tuesday last week that lower energy prices may slow inflation to 6.5 percent by the middle of next year.
Local shares are also set for a week of modest gains, with bargain-buying on commodity-related shares propping up a volatile main index, a dealer said.
Next week’s rise in commodity-related stocks will continue an end-of-week rally of undervalued shares in miners and plantation companies, said Suherman Santikno from Batavia Prosperindo.
For the week ending Aug. 22, the Jakarta Composite Index rose 35.34 points, or 1.7 percent, to finish at 2,120.49.
“What happened over the last three days has been the price rebound of commodities stocks. I expect the commodity-related stocks rally to proceed in the short time, including next week,” he said.
Non-commodity stocks will be volatile with few gains over the week, Santikno said.
The market may test resistance at 2,200 points, Santikno said, with support at 2,100.
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