Based on the data from Badan Pusat Statistik (BPS; Indonesian Bureau of Statistics), the economic growth in the construction sector is proven to be less impressive than the previous years. In the first quarter of 2018, the growth in the sector stated above still exhibited a slight growth, proven to contribute a 0.72% increase towards GDP. The numbers contributed above are documented in the trading sector as well as IT.
According to the track records in the first quarter of 2017, the growth increase is profound to be quite significant earlier this 2018. It is stated that in the first quarter of 2018, there was an increase of 1.39% in comparison to the same period as the previous year of 2017. This was considered a rather remarkable acquisition despite being in the midst of an economic difficulty period in Indonesia. Secretary of Ditjen Bina Konstruksi Kementrian PUPR, has stated that the notable result was due to an infrastructural development that has commenced in the last four years.
Nevertheless, during the second and third quarter of 2018, growth in the construction sector was not as outstanding as the first quarter. During the second quarter, there was a heavy downfall that reached 1.62% which quickly turned to 5.73%. As for the third quarter in 2018, there was an insignificant increase, an outcome of only 0.06% in comparison to the previous quarter. Furthermore, the growth rate in the second and third quarter was suggestively lower compared to the same period during the last year of 2017.
Based on research, a prediction of the deflation stated previously, occurred due to the characteristics of the time pattern that commenced in Indonesia. This was discovered during the middle of the year, specifically from the month of April up to July (in between the second and third quarter of 2018) entering the festive season of Ramadhan and Eid Fitr, where working days are decreased and where there weren’t any workers operating for a period of time. This was the reason for the growth in the construction sector that was going through a rather slow progression, especially the middle of the year.
Meanwhile in the first quarter of 2019, PT. Visi Globalindo Data Utama (PT VISI) predicted that the growth rate of the construction sector would reach 6.63% unanimously amongst the normality of activities in the construction sector. Otherwise, in the coming year of 2019, it is forecasted that further growth rate is to be expected. The construction sector will be receiving a positive sentiment from APBN (State Budget) 2019 as the government will be allocating an infrastructural budget of IDR 420.5 Trillion, possibly even a greater amount in comparison to the budget in 2018 of IDR 410.7 Trillion. This is accounted as evidence of the government’s commitment towards the continuum of the stated infrastructure project, in referral to the program itself in attempt to focus upon the human capital.