Besides Oil and Gas, the Economy in Riau Increased from CPO Exports.

Besides Oil and Gas, the Economy in Riau Increased from CPO Exports.

InfoSAWIT, PEKANBARU – Head of IndonesianBank (IB) in Riau, Siti Astiyah said, in the fourth quarter of 2017, the economy was strong to improve. In the period, the domestic demand was strong to influence the economy.

It increased 2,40 to 3,40 percent (year on year (yoy)). The numbers were higher than those in the third quarter. The increasing happened for the consumption of the household, government, and net export. “From the sector, the increasing economy happened for the agricultural and trade sectors,” she said.

The increasing was the same with the economic progress in Sumatera and in the nation. The domestic factors influenced the economy and the increasing consumption of the government. While the external factors happened for the net export as same as the increasing exports in the quarter in the raw goods, oil, and vegetable fat which was in general, such as, crude palm oil (CPO).

The increasing economy in Riau without oil and gas reached 4,61% (yoy), or increased compared to the previous quarter that reached 4,37%. But IB convinced, there are some risks to the economic progress in Riau that should be anticipated, namely by regional government. “This is indicated by the better global economy and the relatively limited commodity price and it is susceptible to the exports,” she said, as quoted from

She also described, the pillars of the economy are mostly from the household consumption, the buying of the government, investment, agriculture, trade, the cultivation, and construction. The trigger from the external is the better global economy, such as, in the main export countries, such as, China and Europe.

The other indicators are the positive progress in the consumer assurance index, economy assurance index, and also the consumer expectation index that show the increasing factors compared to the previous period.

But there are risks that postpone the economy improvement in Riau this year. One main thing is the decreasing production of oil and gas for the oil well is old enough. Then the prediction of La Nina to happen that may decrease the local agriculture and plantation sectors.

The economy expert of University of Riau, Dahlan Tampubolon said, the regional economy would be better in this year but it would be influenced by the better global economy. “The price of commodity exports, such as, crude palm oil and crude oil in the global market would be better. This influences the economy in Riau to be more positive,” he said.(T2)

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