TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

BI predicts economy to grow slightly better in Q3

Ayomi Amindoni (The Jakarta Post)
Semarang
Sun, September 25, 2016

Share This Article

Change Size

BI predicts economy to grow slightly better in Q3 Cranes work on several construction sites in Jakarta on Aug. 5. (Antara Photo/Muhammad Adimaja)

B

ank Indonesia (BI) projects Indonesia's household consumption will maintain positive economic growth in the country in the third quarter of 2016, although at a lower level than the central bank’s initial estimation.

BI economic and monetary policy director Yoga Affandi said household consumption and investment, which contribute about 80 percent to the nation’s gross domestic product (GDP), would uphold the economic growth.

"We saw an improvement trend in the third quarter. We estimate the growth will be about the same as in the second quarter, but slightly better," he said in Semarang, Central Java on Saturday. In the second quarter, Indonesia's economy grew 5.18 percent on an annual basis, faster than that in the previous quarter, when it grew at a rate of 4.91 percent.

Yoga explained the increasing contribution of household consumption to the economy could be seen from the relatively stable retail sales performances and the positive sales of motorcycles.

Bank central data showed a jump in motorcycle sales in August, following negative growth from April to July. Likewise, sales of household equipment and clothing also recorded a positive trend while communications and the food sector experienced a decrease.

"Meanwhile, non-construction investment had not shown improvement. Imported transportation equipment and machinery still contracted, although the contraction is getting smaller," Yoga said. (ags)

{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.