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Economic Growth in Indonesia


            Economic growth is one of the economic development aspects that emphasizes the growth of aggregate national income or output annually. It can be defined as the changing process in a country's economic conditions to improve and also to show an increase in the production capacity of physical goods and services within a certain time (Cornwall, 2014). .
             The Indonesian government has had economic growth as their primary concern for many years because it is the important part for country development. The lack of external factors and internal factors such as competitiveness, inovation, and the quality of labor cause low economic growth. In research about real and monetary sectors, the position of Indonesian competitiveness is at a bad position, same with Cambodia and The Philiphines. Different with the position of China, Malaysia, Hong Kong, Japan and Singapore which are good for both sectors(Firdausy, 2008). According to Ahmad (2014), low economic growth is not only caused by export and import that still can not be encouraged because of global conditions, but also the vulnerable industries. (Heppy, 2014).
             This essay will explain about the problems of low economic growth in Indonesia and there will be two solutions that can be implemented to solve the problem with a further elaboration of the evaluation based on creative industries. .
             Hadi, Aida, Ninasapti, Armida and Sri (2005, p. 194) found that it involves some indicators, such as labor, production, industries, investment activities, social welfare, the use of technology and national income per year. Since Joko Widodo became the president of Indonesia in 2014, the government has some policies to fix export activities and the use of bio fuel (Asril, Bambang, 2015).The percentage target for economic growth is 7% in 2015 which makes the government pay attention to the relationship between fluctuation in foreign currency and national investment.


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