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Jakarta Post

Economy will only grow 5% this year: Bank Mandiri


    The Jakarta Post

Jakarta   /   Wed, April 6, 2016   /  02:12 pm
Economy will only grow 5% this year: Bank Mandiri A worker finishes pipe maintenance works in Demak, Central Java, on March 23. PT Pertamina Gas (Pertagas) is building a 271-kilometer gas pipeline from Gresik, East Java, to Semarang , Central Java to secure gas supply in the two provinces. The project aims to help the economy grow in line with the government’s energy diversification program. (ANTARA FOTO/Yusuf Nugroho)

The easing of monetary policies and fiscal expenditures will only help the economy grow  a maximum 5 percent this year, Bank Mandiri chief economist Anton H. Gunawan has said.

The prediction made by Bank Mandiri, the largest lender in terms of assets, is slightly lower than the economic growth assumption of 5.3 percent in the 2016 state budget. The government plans to submit its revised budget to the House of Representatives in May.

“The economy will pick up in the second quarter, driven by investment, both government and private investment,” Anton said in Jakarta on Tuesday.

Government spending, mainly from capital expenditure to build infrastructure, will help the economy grow, he further said.

According to Mandiri Sekuritas chief economist Leo Putra Rinaldy, the country might benefit from the economic slowdown in developed countries, making Indonesia more attractive for foreign investment.

Bank Mandiri predicts the rupiah to remain around Rp 13,400 per US dollar throughout the year. (sha/ags)

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