Long-term Trends in Gross Domestic Expenditure in Indonesia

This paper seeks to overcome the fact that historical estimates of Gross Domestic Product (GDP) for Indonesia are currently only available in constant prices. Using the expenditure approach, it offers new estimates of Gross Domestic Expenditure (GDE), the equivalent of GDP, in current prices. The paper anchors the estimates on Indonesia’s Input-Output (I-O) Tables available for benchmark years between 1969 and 2010, which reveal that until 1995 Indonesia’s official national accounts underestimated GDP and GDE. The paper combines corrections based on the I-O Tables with additional sources to present provisional new estimates of GDE in current prices for 1870-1941 and 1948-1995. It then analyses the composition of GDE, noting the generally modest proportions of discretionary public expenditure and capital formation, particularly during 1870-1913 and 1948-1966