Simple Economy Part II: Can Indonesia Achieve A Double Digit GDP Growth?
Indonesia's presidential candidates have delivered a strong message to all voters, that once they're elected, they'll strive for higher GDP growth in times ahead. The incumbent Yudhoyono said Indonesia will achieve a strong and sustainable 7% growth starting 2014, Kalla and his pair were sure that Indonesia can start enjoying 8% in 2011, while Mega and Prabowo tried to convince us that Indonesia can even be buoyed with 10% growth.
- Consumption: means private/individual consumption in the economy, how much your family spend.
- Investment: investing in business or household capital. Please acknowledge, capital here is not SAVING. Saving is the opponent of Investment. Money saved in banks may halt the growth.
- Government Spending: salaries for public servants, stimulus package, purchase of military equipments, government investment, etc.
- Export vs Import: make sure, keep the money earned from export is higher than money spent for import.