Manado, N Sulawesi, Dec 15 (Antara) - North Sulawesi has chalked up a healthy growth in 2017, amid steady progress recorded in the global economic recovery.
The global economy is picking up estimated to grow 3.6 percent in 2017. The growth was driven not only by advanced but also emerging economies . It was reflected by stability in global financial market and growing trade that resulted in commodity price hikes.
Head of Bank Indonesia (BI) Representative office for North Sulawesi Soekowardojo said amid the dynamics of global and domestic economy, North Sulawesi had made much headway to toward economic recovery.
After experiencing slowdown , North Sulawesi recorded a rebound in 2016 and the rising trend continues through 2017. In the third quarter of this year, the economy of the province grew 6.49 percent.
Soekowardojo attributed the rebound to the government`s strategy of acceleration in spending and strong growth in investment and exports. In addition, inflation was well under control. In November, 2017, the province recorded a deflation of 0.09 percent month to month (mtm) on a cut in administered prices and in volatile food prices.
Year-on-year, North Sulawesi`s inflation in November, 2017 was 0.38 percent well below the target set for 2017.
Progress has also been recorded in other economic indicators. The banking performance was as reflected in the third party funds and credits growing with lower non performing loan (NPL) in the third quarter of 2017,Soekowardojo noted.
Investment also grew with foreign direct investment at US$350 million and domestic direct investment at Rp1.4 trillion until October, 2017. Similar increase was recorded in exports which were valued at US$738 million in the same period. The number of foreign tourists rose with arrivals totaling 56,596 in the first nine months of this year.
The economic gains resulted in improved welfare of the people as reflected in lower unemployment and poverty rates and misery index.
The quality of life in the province has continued to improve as shown by Human Development Index now ranked the 7th and Happiness Index now ranked the 3rd in Indonesia.
Based on the prevailing condition, the economy of North Sulawesi is expected to grow 6.3 percent in 2017 , well above the country`s growth rate target of 5.2 percent. North Sulawesi`s inflation year-on-year is estimated to be around 3 percent or below the target.
Soekowardojo attributed the achievements to synergy among all stakeholders . In 2017, Bank Indonesia (BI) has taken a number of initiatives to sustain and strengthen North Sulawesi`s economy, he said.
In a bid to control inflation Bank Indonesia initiated "Gerakan Barito, Batanang Rica and Tomat", to prevent onion, chili and tomato price hikes, which are often to be behind a surge in inflation in the province.
Around 60,000 chili and tomato seeds were distributed among groups of farmers in the province in 2017. The central bank also paid serious attention to development of small businesses (UMKM) by developing seven clusters of UMKMs in the province including integrated cattle and rice farm clusters in Bolaang Mongondow Utara.
The initiative of Bank Indonesia in UMKM development in North Sulawesi has won appreciation from the International Council of Small Businesses Presidential Award with the category of Policy Maker.
North Sulawesi has also recorded an increase in the number of foreign visitors following the issuance of the Presidential Decree No 21 of 2016 on visa free visits.
The opening of direct flights between Manado`s Sam Ratulangi airport and 8 cities in China and more frequent domestic and international events in Manado also had significantly contributed to increase in number of tourists to the region.
North Sulawesi has also taken big steps in infrastructure development , accelerating development of strategic projects including in the electricity sector.
Amid the progress and achievements , North Sulawesi is still facing a host of problems that need serious addressing to sustain the region`s economic growth.
North Sulawesi`s exports are still dominated by primary commodities such as coconut oil, fish, and spices. Processed coconut based products account for 65 percent of the exports of the province.
No much headway has been made in the processing of upstream farm products and industrialization. In the financial sector, credits are still dominated by consumer credits, which account for 60 percent of total credits in the province.
Another challenge no less serious is low labor quality with workers having low level of education dominating the working people.
However, North Sulawesi Governor Olly Dondokambey expressed optimism that the province with 15 regencies would continue to grow stronger from year to year.
The optimism is based on a number of economic indicators including inflation, which has remained well under control below 4 percent, unemployment and poverty rates which have tended to decline and economic and investment growth, which has increased from year to year, he said.
The governor cited the economy of the province grew faster at 6.43 percent in the first quarter of 2017 as against the country`s record of only 5.01 percent.
Investments were worth Rp2.81 trillion in realization in the first half of the year including Rp2.5 trillion in foreign investment . The realization of investment mainly in tourism, mining and energy was 114.4 percent higher than the target of Rp2.5t trillion.
The governor said , the economic growth has succeeded in reducing unemployment and poverty, adding, unemployment was recorded at 6.12 percent so far in 2017 down from 7.82 percent in 2016.
Poverty in 2017 was recorded at 8.1 percent or down from 8.98 percent in 2016, he said , adding, the poverty rate was lower than the country`s poverty rate of 10.64 percent.
Meanwhile, Deputy Governor Steven Kandouw said political activities which are expected to heat up in 2018-2019, would have significant impact on the province`s economic performance.
The country would hold elections for regional leaders in 2018 to be followed with presidential election in 2019.
"The `democracy festivals` in 2018 and 2019 would run smoothly that the economy would remain stable," Steven said after an annual meeting of representative office of Bank Indonesia on Dec 13, 2017.
Based on past years` experience, political hullabaloo had no negative impact on the economy in North Sulawesi, he said.
On the contrary , there was an increase in consumption that add strength to driving the regional economic growth, he said.
In addition, the people of North Sulawesi are quite mature in politics that they would allow everything to be politicized, he said.
Political activities would not harm economic development and security , he said.
Chief Representative of Bank Indonesia Soekowardojo predicted the economy of North Sulawesi would expand in the last quarter of 2017.
"Commodity prices are expected to rise still," he said, adding improved global economy and the revival of the manufacturing industry in the world would contribute to increasing exports of North Sulawesi of raw material.
Soekowardojo also predicted that household consumption in North Sulawesi would continue to grow to strengthen the province`s economic growth.
In addition, increase was already recorded in government spending in entering the second half of the year, and the government`s efforts to improve investment climate had lured in more investment to the province. ***3*** (AS)
(T.SYS/B/H-ASG/F001) 15-12-2017 13:15:30
The global economy is picking up estimated to grow 3.6 percent in 2017. The growth was driven not only by advanced but also emerging economies . It was reflected by stability in global financial market and growing trade that resulted in commodity price hikes.
Head of Bank Indonesia (BI) Representative office for North Sulawesi Soekowardojo said amid the dynamics of global and domestic economy, North Sulawesi had made much headway to toward economic recovery.
After experiencing slowdown , North Sulawesi recorded a rebound in 2016 and the rising trend continues through 2017. In the third quarter of this year, the economy of the province grew 6.49 percent.
Soekowardojo attributed the rebound to the government`s strategy of acceleration in spending and strong growth in investment and exports. In addition, inflation was well under control. In November, 2017, the province recorded a deflation of 0.09 percent month to month (mtm) on a cut in administered prices and in volatile food prices.
Year-on-year, North Sulawesi`s inflation in November, 2017 was 0.38 percent well below the target set for 2017.
Progress has also been recorded in other economic indicators. The banking performance was as reflected in the third party funds and credits growing with lower non performing loan (NPL) in the third quarter of 2017,Soekowardojo noted.
Investment also grew with foreign direct investment at US$350 million and domestic direct investment at Rp1.4 trillion until October, 2017. Similar increase was recorded in exports which were valued at US$738 million in the same period. The number of foreign tourists rose with arrivals totaling 56,596 in the first nine months of this year.
The economic gains resulted in improved welfare of the people as reflected in lower unemployment and poverty rates and misery index.
The quality of life in the province has continued to improve as shown by Human Development Index now ranked the 7th and Happiness Index now ranked the 3rd in Indonesia.
Based on the prevailing condition, the economy of North Sulawesi is expected to grow 6.3 percent in 2017 , well above the country`s growth rate target of 5.2 percent. North Sulawesi`s inflation year-on-year is estimated to be around 3 percent or below the target.
Soekowardojo attributed the achievements to synergy among all stakeholders . In 2017, Bank Indonesia (BI) has taken a number of initiatives to sustain and strengthen North Sulawesi`s economy, he said.
In a bid to control inflation Bank Indonesia initiated "Gerakan Barito, Batanang Rica and Tomat", to prevent onion, chili and tomato price hikes, which are often to be behind a surge in inflation in the province.
Around 60,000 chili and tomato seeds were distributed among groups of farmers in the province in 2017. The central bank also paid serious attention to development of small businesses (UMKM) by developing seven clusters of UMKMs in the province including integrated cattle and rice farm clusters in Bolaang Mongondow Utara.
The initiative of Bank Indonesia in UMKM development in North Sulawesi has won appreciation from the International Council of Small Businesses Presidential Award with the category of Policy Maker.
North Sulawesi has also recorded an increase in the number of foreign visitors following the issuance of the Presidential Decree No 21 of 2016 on visa free visits.
The opening of direct flights between Manado`s Sam Ratulangi airport and 8 cities in China and more frequent domestic and international events in Manado also had significantly contributed to increase in number of tourists to the region.
North Sulawesi has also taken big steps in infrastructure development , accelerating development of strategic projects including in the electricity sector.
Amid the progress and achievements , North Sulawesi is still facing a host of problems that need serious addressing to sustain the region`s economic growth.
North Sulawesi`s exports are still dominated by primary commodities such as coconut oil, fish, and spices. Processed coconut based products account for 65 percent of the exports of the province.
No much headway has been made in the processing of upstream farm products and industrialization. In the financial sector, credits are still dominated by consumer credits, which account for 60 percent of total credits in the province.
Another challenge no less serious is low labor quality with workers having low level of education dominating the working people.
However, North Sulawesi Governor Olly Dondokambey expressed optimism that the province with 15 regencies would continue to grow stronger from year to year.
The optimism is based on a number of economic indicators including inflation, which has remained well under control below 4 percent, unemployment and poverty rates which have tended to decline and economic and investment growth, which has increased from year to year, he said.
The governor cited the economy of the province grew faster at 6.43 percent in the first quarter of 2017 as against the country`s record of only 5.01 percent.
Investments were worth Rp2.81 trillion in realization in the first half of the year including Rp2.5 trillion in foreign investment . The realization of investment mainly in tourism, mining and energy was 114.4 percent higher than the target of Rp2.5t trillion.
The governor said , the economic growth has succeeded in reducing unemployment and poverty, adding, unemployment was recorded at 6.12 percent so far in 2017 down from 7.82 percent in 2016.
Poverty in 2017 was recorded at 8.1 percent or down from 8.98 percent in 2016, he said , adding, the poverty rate was lower than the country`s poverty rate of 10.64 percent.
Meanwhile, Deputy Governor Steven Kandouw said political activities which are expected to heat up in 2018-2019, would have significant impact on the province`s economic performance.
The country would hold elections for regional leaders in 2018 to be followed with presidential election in 2019.
"The `democracy festivals` in 2018 and 2019 would run smoothly that the economy would remain stable," Steven said after an annual meeting of representative office of Bank Indonesia on Dec 13, 2017.
Based on past years` experience, political hullabaloo had no negative impact on the economy in North Sulawesi, he said.
On the contrary , there was an increase in consumption that add strength to driving the regional economic growth, he said.
In addition, the people of North Sulawesi are quite mature in politics that they would allow everything to be politicized, he said.
Political activities would not harm economic development and security , he said.
Chief Representative of Bank Indonesia Soekowardojo predicted the economy of North Sulawesi would expand in the last quarter of 2017.
"Commodity prices are expected to rise still," he said, adding improved global economy and the revival of the manufacturing industry in the world would contribute to increasing exports of North Sulawesi of raw material.
Soekowardojo also predicted that household consumption in North Sulawesi would continue to grow to strengthen the province`s economic growth.
In addition, increase was already recorded in government spending in entering the second half of the year, and the government`s efforts to improve investment climate had lured in more investment to the province. ***3*** (AS)
(T.SYS/B/H-ASG/F001) 15-12-2017 13:15:30