Monday, 21st August 2017

BI believes national economy to perform better in Q2

16th June 2017 | 8.803 Views
Jakarta (ANTARA News) - Bank Indonesia believed the economy will slightly perform better in the second quarter of 2017 than in the previous quarter due to high household consumption during the fasting month of Ramadhan and subsequent Lebaran festivities.

Much of government investment which has been realized in the second quarter will boost private investment, adding to the second-quarter growth, the assistant to BI governor/chief of the central banks economic and monetary policies department, Dody Budi Waluyo said in a meeting of BIs board of governors here on Thursday.

The results of a study conducted by BI show that the private investment will be concentrated not only in the construction sector but also in the non-construction sectors including plantation and mining sectors, he said.

"We believe it (the second-quarter growth) will slightly be higher than the first-quarter growth," he said.

The Indonesian economy expanded by 5.01 percent in the first quarter of 2017.

"Private consumption (in the second quarter) also rose compared to the first quarter although the increase is not large because their are still a variety of indicators," he said.

In addition, high consumption in Ramadhan and Lebaran will boost household consumption, he said.

At the previous meeting of BIs board of governors in May 2017, bank Indonesia Governor Agus Martowardojo predicted the economy will grow by 5.11 percent in the second quarter and further move up to more than 5.2 percent in the third and fourth quarters.(*)