Fortunately we still recorded growth."
Medan, North Sumatra (ANTARA News) - North Sumatra, one of the country`s most important provinces, reported a slowdown in economic growth in the first half of the year .

The regional office of the Central Bureau of Statistics (BPS) said the province recorded an economic growth of 6.17 percent in the January-June period down from 6.24 percent in the same period last year.

"Growth was recorded in all sectors but it is slowing," Ateng Hartono, an official of the regional office of BPS, said here on Friday.

Ateng said there was a decline of 0.09 percentage point in growth in the second quarter compared to the previous quarter this year.

He attributed the slowdown to oil fuel price hike triggering an increase in prices in general weakening the purchasing power of the people.

In addition to oil fuel price factor, the economic setback was also attributable to inadequate supply of gas affecting the process of production in various industries, he said.

He said the biggest contributor to the economic growth in the first half of the year was the trade, hotel and restaurant sector contributing 1.51 percentage points, followed by agricultural sector accounting for 1.16 percentage points and transport and communications sector for 0.89 percentage points.

Other sectors had smaller contributions , he added.

He said North Sumatra`s gross regional domestic product was recorded at Rp194.132 trillion on current prices and Rp70.06 trillion on constant price in the first half of the year.

Chairman of the regional branch of the Indonesian Association of Business People (Apindo) Parlindungan Purba said slowdown had been recorded by almost all regions as a result of the global crisis.

"Fortunately we still recorded growth," Parlindungan said.

Factors sustaining economic growth in North Sumatra included state and regional budget funds being well spent, increase in transport and communications on school holidays and preparations ahead of Islamic Idul Fitri celebrations boosting industrial production,, he said.
(Uu.H-ASG/A014)

Reporter: Evalisa Siregar
Editor: Priyambodo RH
Copyright © ANTARA 2013