Bank Indonesia Predicts 5.1 Percent Economic Growth

• Dec 24, 2018

TEMPO.CO, Jakarta – Indonesia’s economic growth in the 4th quarter of 2018 is predicted to not exceed 5.2 percent due to bad export performance. Bank Indonesia Governor Perry Warjiyo asserted that there is no probability of the economic growth to reach 5.2 percent.

“However, it is clearly over 5 percent, so in overall, for 2018 [economic growth] is predicted at 5.1 percent,” Perry said on Friday, December 21, 2018.

Perry encouraged stakeholders not to focus on the growth aggregate. Instead, Perry hoped that all public elements can highlight the actual growth composition. The 5.1 percent growth, as Perry explained, is mainly supported by the growth of domestic demands.

Perry said that domestic demand, which consists of domestic consumption and investment, was relatively high at 5.5 percent in 2018. Sturdy investment growth still mainly driven by government infrastructure projects while non-construction investments were experiencing a slowdown due to effects of the manufacturing and mining sector improvements.

Unfortunately, external demands, which reflected by net export, remains a negative following subtraction from net import.

Perry added that in general, a 6 percent growth of export is good. However, prices of commodities such as palm oil and coal are experiencing a decrease due to a slowdown in China’s economic growth, which affected the number of demands.

BISNIS.COM

Source: https://en.tempo.co/read/1158027/bank-indonesia-predicts-5-1-percent-economic-growth/full&view=ok