Bank Indonesia Predicts Decline in Commodity Prices in 2018

• May 23, 2017

TEMPO.CO, Jakarta – The Governor of Bank Indonesia Agus Martowardojo predicts a slightdecline in commodity prices next year. It would have an impact on the government’s economic growth target of 5.4-6.1 percent set out in draft 2018 state budget.

“We expect consolidation of real sector, corporations and banks to be concluded so that 2018 could see positive economic growth. We could yet reveal the figure,” Agus said yesterday, May 22, in Jakarta.

He noted that the initial target for 2017 economic growth of 3.4 percent has been revised to 3.5 percent. Meanwhile, according to Agus, the global economic growth forecast for 2018 is 3.6 percent.

In the first quarter of 2017, Indonesia’s economic growth hit 5.01 percent underpinned by better export performance and government consumption. “Going forward, we expect consumption and private investment to contribute [more],” he said.

Agus said that more private investment will make the economy stronger. Bank Indonesia predicts 2017 economic growth at the range of 5-5.4 percent. “Restructuring of cooperatives and banks continues and is expected in the second half to become the foundation of better economic growth,” he said.

Source: https://en.tempo.co/read/news/2017/05/23/056877770/Bank-Indonesia-Predicts-Decline-in-Commodity-Prices-in-2018