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Indonesian economy expands 6.4 percent in Q2

The Central Statistics Agency (BPS) on Thursday reported that the country's economy in the second quarter grew by 6.4 percent compared to the same period last year.

On a quarterly basis, the economy expanded by 2.4 percent compared to the first semester, with a GDP of Rp 1,230.9 trillion (US$134 Billion).

Government spending during the second quarter saw a 21.2 percent jump from the first, providing a significant boost to the overall economy.

Household consumption grew by 5.3 percent compared to the same period last year, while government spending increased by 2.2 percent.

"The three sectors with the highest quarter-to-quarter growth were agriculture at 5.1 percent, transportation and communication at 4.1 percent, and electricity, gas and clean water at 3.6 percent," Slamet Sutomo said.

Slamet said the total growth for the second quarter was dominated by the manufacturing sector, which was up by 27.3 percent, with agriculture, and trade, hotel and restaurants following closely, contributing 14.7 percent and 14. 3 percent respectively.

The top performer in terms of growth within the year was the transportation and communication sector, which grew by 19.6 percent. The electricity, gas and clean water sector increased by 11.2 percent.

The financial, real estate and services sector, on the other hand, held third place with an 8.7 percent growth when compared to the second quarter of 2007.

The BPS figures continue to reveal disparities between the growth of labor-intensive industries and capital-intensive services, as well as disparities between Java and other regions.

Java, in this respect, was reported to have contributed 57.5 percent to the nation's total income per capita this quarter. Sumatra and Kalimantan follow by 24.4 percent and 9.9 percent respectively.

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