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Bank Indonesia estimates economy to grow 5% in Q3
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Lower than expected: A bank staff member counts banknotes at a bank in Jakarta on Sept. 26. Bank Indonesia sees Indonesia's economic growth in the third quarter as unlikely to be as strong as previously expected and only reach 5 percent year-on-year (yoy). (Antara Photo/Muhammad Adimaja)
B
ank Indonesia sees Indonesia's economic growth in the third quarter as unlikely to be as strong as previously expected and only reach 5 percent year-on-year (yoy).
With these developments, overall economic growth for 2016 is estimated to stand at the lower range of between 4.9 percent and 5.3 percent (yoy).
BI economic and monetary policy executive director Juda Agung said the existing indicators, including consumption, investment, government spending and export growth, were lower than the central bank had anticipated.
"We estimate [the growth rate] to reach around 5 percent in the third quarter, a little bit in the range or lower, but still about 5 percent," Juda said at a press conference in Jakarta on Thursday.
BI executive director of communications Tirta Segara added consumption indicated improvement in the third quarter. Meanwhile, private investment, especially non-construction, remains strong, in line with large installed capacity.
Tirta said fiscal stimulus was expected to remain limited, in line with the adjustment of government spending in the second half this year.
"On the external side, the weak economy and trade resulted in limited improvement in exports. In the meantime, some export commodity prices began to show improvement," Tirta said. (dmr)
