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Jakarta Post

Economy grows only 5.1 percent this year: BI deputy governor

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, November 22, 2018   /   08:15 am
Economy grows only 5.1 percent this year: BI deputy governor Bank Indonesia deputy governor Dody Budi Waluyo (Antara/Puspa Perwitasari)

Bank Indonesia deputy governor Dody Budi Waluyo announced on Wednesday that this year’s economic growth would likely be 5.1 percent, lower than the 2018 state budget estimate of 5.4 percent.

 “BI’s estimate is 5.1 percent this year,” said Dody as quoted by kontan.co.id when speaking as a keynote speaker at the Core Economic Outlook in Jakarta on Wednesday, adding that growth in the fourth quarter would be 5.17 percent, similar to growth in the previous quarter.

The Finance Ministry revised the 2018 economic growth estimate in July to 5.2 percent.

Dody stressed that the figure was only an estimate and the official figure would be announced late November after the BI board of governors’ meeting.

He noted that the realization of investment in the third quarter was Rp 173.8 trillion, 1.4 percent quarter-on-quarter, while household spending in the third quarter was 5.0.1 year-on-year, higher than in the corresponding period of 2017, which was 4.93 percent yoy.

Meanwhile, bank credit extensions grew 12 percent, Dody said, adding that the high growth was supported by monetary policy. Dody said banks had not increased their credit interest rates even though interest rates for investment and third party funds had been increased. (bbn)