Indicators or Factors that will Affect Economic Condition in Indonesia

The indicator that will affect economic condition are Produk Domestik Bruto (PDB) or we called GDP and inflation.

PDB or GDP (Y) has 5 components, they are consumption (C), investment (I), governance expenditures (G), export (X) and import (M).

Y = C + I + G + ( X – M )

1. Consumption -> spending on goods and services, with the exception of purchases of new housing. Key factors are interest rates and the availability of debt, and consumer confidence.

2. Investment -> is the purchase of goods that will be used in the future to produce more goods and services, such as capital equipment (can be human resources, natural resources, and capital resources), structures, and inventories. Key factors are the quality of human resources, decreasing in natural resources, technological knowledge, inflation and tax.

3. Governance Expenditure -> include spending on goods and services by local, state, and federal governments. Key factors are culture, total population, and inflation.

4. Export and Import

Export ->  goods and services shipped outside a country.

Import ->  goods and services shipped into a country.

Key factors are exchange rates.

Second indicator is inflation. It is bad for economy because make the value of money decrease, the purchasing power will also decrease, increase poverty, reduction of local product competitiveness compare to imported products, and increase crime. Key factors are money supply and rising labor wages.

4/30/2011 until 3/7/2012