Economic Development of Indonesia

Economic development is the process by which emerging economies become

advanced economies. In other words, the process by which countries with low living
standards become nations with high living standards. Economic development also refers to
the process by which the overall health, well-being, and academic level the general
population improves. The conditions change over time along with the economic and business
cycles, as an economy goes through expansion and contraction. Economic conditions are
considered to be sound or positive when an economy is expanding and are seen as adverse or
negative when an economy is contracting. Some economic indicators like the unemployment
rate and GDP growth rate are monitored closely by market participants, as they help to make
an assessment of economic conditions and potential changes in them. In indonesia, economic
growth grafic shows that Indonesia’s economi is tend to stable and and have an upward trend.

Based on statistical data issued by The Central Statistics Agency, in the last five years,
Indonesia's economic growth has been in the range of an average of 4.7 to the highest of 5.21
percent. The Central Statistics Agency recorded Indonesia's economic growth rose 4.21
percent compared to the first quarter of 2018 and grew 5.27 percent compared to the same
period last year. In the first quarter of 2018, the economic growth rate decreased by 5.06
percent and rose in the second quarter to 5.27 percent. This period's economic growth was the
highest since 2014.

In household consumption, the Indonesian government has managed to keep this

component growth at around 5 percent. This condition can be realized because the
government is able to keep the inflation rate below 4 percent in accordance with APBN target
and is still within the target range of Bank Indonesia, which is 2.5-4.5 percent. In 2018 the
government was able to suppress rising food prices so as to reduce inflation during this
period. In the second quarter of 2018 the growth of household consumption expenditure by
5.14 percent. The drivers of growth in household consumption are among others affected by
the harvest, Eid al-Fitr, and regional head elections. In addition, there are some increases in
sales of products such as motorbikes and cars.

In terms of employment, stable economic growth in the range of 5 percent has also
been able to reduce unemployment to 5.13 percent in February 2018. From 133.94 million
Work Force people, 6.87 million people are still looking for work (unemployment). This
figure is still within the range of the 2015-2019 National Medium Term Development Plan
target, which is equal to 5 -5.2 percent. The unemployment rate that experienced a decline is
unfortunately still quite a lot. The reason was none other than the preference factor, where
there were still many new graduates who were too picky for work. The problem of
unemployment is still a separate homework for the government, but that does not mean the
unemployed can only sit and still while waiting. It is better to the unemployment especially
fresh graduates to start with internship or try to make a small business.

From the above explanation, it can be concluded that it is true that Indonesia's
economic growth is not in line with the APBN target. But what happened in Indonesia shows
that our economic growth has begun to lead to quality economic growth. Although it tends to
be stable at around 5 percent. But there are still many things that need to be improved and
improved. The goverment still has many tasks to do to achieve a better Indonesian economy.
Consistency and measurability of economic policies implemented by the government to
realize quality economic growth is all people need to make a good economy.