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Jakarta Post

BI predicts economy to grow slightly better in Q3

  • Ayomi Amindoni
    Ayomi Amindoni

    The Jakarta Post

Semarang   /   Sun, September 25, 2016   /  04:33 pm
BI predicts economy to grow slightly better in Q3 Cranes work on several construction sites in Jakarta on Aug. 5. (Antara Photo/Muhammad Adimaja)

Bank 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)

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