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Robust growth in Q2 due to seasonal factors, BI says
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Bank Indonesia governor Agus Martowardojo sits next to former vice president Boediono at a seminar held during the annual Executives' Meeting of Asia Pacific Central Banks (EMEAP) in Bali on Aug. 1. (Courtesy of Bank Indonesia/-)
B
ank Indonesia says the country's robust economic performance in the second quarter of 2016 was driven by seasonal factors. However, it can be sustained until the third quarter if household consumption is maintained as inflationary pressures have been well-mitigated.
BI governor Agus Martowodojo said Indonesia's economy was in relatively good condition in the second quarter of 2016, picking up by 5.18 percent, higher than growth in the previous quarter of 4.92 percent.
"Although the economy grew beyond the expectation of 4.94 percent, growth was driven by seasonal factors whereas the economy has not fully recovered, so we predict the economy will grow 5.1 percent overall in 2016," Agus said at his office in Jakarta on Monday.
The estimation is below the government’s 5.2 percent target of 2016 gross domestic product (GDP) growth this year.
Growth during the second quarter was driven by robust consumption and purchasing power due to Ramadhan and Idul Fitri. In addition, increased government spending also helped drive the economy while commodity prices began to rise, resulting in better export figures.
He stressed that the central bank would constantly monitor domestic and global developments while strengthening coordination with the government to accelerate growth and maintain macroeconomic stability. (ags)
