In the last decade, Indonesia’s tertiary sector has continued to grow, further surpassing the primary and secondary sector. This week’s chart illustrates Indonesia’s economic composition in terms of the percentage of the three sectors in the GDP value-added, as well as the annual growth rate of the Information and Communication industry. The chart shows that despite the Covid-19 pandemic, the tertiary sector continues to grow and has hit a new record in 2020, taking up 46% of the GDP. Such a trend is partly ascribed to the fast-growing IT industry.
- The size of the agriculture sector gradually decreases overtime while the manufacturing sector remains somewhat consistent in the last decade.
- In terms of the percentage of output in gross value-added, the service sector has become the pillar of the Indonesian economy.
- Over the last decade, the Information and Communication industry, which provides relatively new services when compared to the traditional service industry, has become more essential.
- The annual growth rate of the IT industry has always been above the growth rate of the gross value-added GDP. However, in 2020 Indonesia’s GDP decreased for the first time in two decades, and the growth of the IT industry remains steady.
By Xiaochen BIAN