LAMANRIAU.COM, PEKANBARU – Head of Representative of Bank Indonesia (BI) Riau Province Decymus said that Riau’s economy in the fourth quarter of 2020 contracted by 1.47 percent year on year (yoy), but improved compared to the previous quarter which contracted by 1.67 percent yoy.
“Trajectory growth figures on a quarterly basis show Riau’s economy is starting to gradually recover in the second half of 2020,” said Decymus.
He explained that on an annual basis, Riau’s economy in 2020 experienced a contraction of 1.12 percent, the contraction of economic growth experienced by Riau was not as deep as the contraction of the Sumatra and National economies, which contracted 1.19 percent and 2.07 percent respectively.
“Riau’s economic recovery is driven by strong demand for main commodities, namely CPO and coconut,” he said He added that these two commodities were raw materials for various daily needs products such as soap, shampoo, and so on, whose demand increased during the pandemic so that these conditions had contributed to the growth of non-oil and gas export performance, whose growth reached the highest point in the last 3 years.
He continued, while the decline in purchasing power and limited community activities as a result of the Covid-19 pandemic caused a contraction in the business field, trade and repair sector, and the business sector in the accommodation and food and drink provision sector.
“In addition, business fields in the construction sector also contracted due to the delay in infrastructure projects as a result of the reallocation of local and central government budgets for handling the pandemic,” he explained The details of the growth (% yoy) component of Gross Regional Domestic Product (GRDP) in Quarter IV 2020 are as follows.
PDRB Usage includes household consumption -1.57%, LNPRT consumption 8.02%, government consumption 4.05%, PMTB -4.66%, foreign exports 20.85%, foreign imports 11.37%. PDRB of Business Fields include Agriculture 3.08%, Mining -5.37%, Processing Industry -0.02%, Construction -4.86% and Trade -8.19% Meanwhile, the details of the growth (% yoy) for the 2020 GDP component are as follows.
PDRB Usage: Household Consumption -2.11%, LNPRT Consumption -0.40%, Government Consumption -6.39%, PMTB -1.86%, Foreign Exports 13.10%, Foreign Imports -7.02%. PDRB of Business Fields include Agriculture 4.35%, Mining -6.56%, Processing Industry 1.93%, Construction -3.28% and Trade -12.01%. (MCR)
