"If economic slowdown is to happen in Europe as a result of the economic crisis, it will have a relatively small impact on Indonesia," the head of the BEI`s research unit, Poltak Hotradero, said here on Wednesday.
He said Indonesia was doing much of its trade with other Asian countries and developing nations instead of with European countries.
Citing an example, he said Indonesia was doing 16.4 percent of its foreign trade with Japan, 8.89 percent with the United States and 7.48 percent with Singapore.
"(Our foreign trade) with European countries is relatively small. If combined, our trade with European Union member states accounts for only 11.3 percent of our overall foreign trade," he said.
He said the economy of a country was determined by three factors, the movement of people, money and goods. Where the last factor was concerned, the Indonesian economy would not be affected by the European economic crisis.
He said 60 percent of the domestic economic growth was contributed by private consumption and 6-7 percent by government consumption.
"Nearly two-thirds of private consumption and the service sector now serve as the engine of the domestic economy," he said.
According to him, private or household consumption made up the greatest part of the Indonesian economy. Overall, the private consumption played a decisive role in the country`s economic growth. (*)
Editor: Kunto Wibisono
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