Composite Stock Price Index (CSPI) to weaken at the trading break on Monday (5/8). (Credit : CNN)

Second quarter of economic growth released, JCI was in red zone

Siti Fatimah Adri
Politics & Economic
News Flash Indonesia
Aug 05, 2019
1550
The Central Statistics Agency (BPS) has released a report on investment growth in the second quarter of 2019. In its report, the BPS said that economic growth in the second quarter of 2019 was only 5.01 percent or lower than the same period last year of 5.85 percent. This weakening occurred due to the contraction in the growth of investment in capital goods, in addition to buildings and machinery.

In addition, the decline in growth performance this year compared to last year due to pressure from the global economic slowdown. This condition was strengthened by the revised global economic growth projection by international financial institutions.

BPS head Suhariyanto revealed gross domestic product (GDP) based on constant prices (ADHK) in the second quarter of this year recorded Rp2,753 trillion, higher than the same period last year of Rp2,603 trillion. On the basis of gross prices (ADHB), GDP in the second quarter of 2019 was Rp3,963 trillion.

According to the business sector, other service sectors recorded the highest growth, which was 10.73 percent annually. However, because its portion of GDP is only around 1.92 percent, its contribution does not significantly boost economic growth.

Meanwhile, the portion of the manufacturing sector is still dominant against GDP with a value of 19.52 percent. Nevertheless, the growth was only recorded 3.54 percent, slowing from the same period last year 3.88 percent. If specified in more detail, the coal industry and oil and gas processing fell 0.25 percent.

This decline also caused the Composite Stock Price Index (CSPI) to weaken at the trading break on Monday (5/8). The index closed at 6,229, down 110.87 points or 1.75 percent.

RTI Infokom noted investors booked transactions of Rp3.72 trillion with a volume of 10.15 billion shares. Meanwhile, foreign market participants recorded net sell or net sell in all markets amounting to Rp388.30 billion.

At the close of this time, 89 shares moved higher, 321 dropped, and 96 others did not move. Then, the compact majority sectoral index weakened with the financial sector plummeting at the most by 2.04 percent.

Source: https://www.cnnindonesia.com/ekonomi/20190805123844-92-418458/ihsg-berada-di-zona-merah-usai-rilis-pertumbuhan-ekonomi