REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia is optimistic that the country's economic growth target that it had estimated between 5.5 and 5.9 percent in 2014 will be achieved despite slow investment realization in the first quarter.

"Actually the investment growth in 2013 did not contribute much. We have relied more on exports. So, although investment was not as strong as we hoped it would be, with domestic demand and exports, our economy could still grow between 5.5 and 5.9 percent," Governor of BI, Agus Martowardojo, stated at his office on Friday.

He explained that the slow realization of investments in the first quarter of 2014 was still relatively normal. Corporations could not always invest every year, he added.

"Corporations cannot always invest every year. If a company wishes to expand it will only build a new factory in the next three years time," he pointed out.

Agus noted that he did not see realization figures in detail and would discuss them later in the board of governors meeting.

The Investment Coordinating Board (BKPM) has stated that realization of investment in the first quarter of 2014 reached 106.6 trillion IDR. Although it was the highest quarterly record, it was a slow year-on-year compared to the previous year.

Realization of investment in the first quarter of 2014 rose 14.6 percent from the realization in the same period last year. Year-on-year in the first quarter of 2013 there was an increase of 30.6 percent from the realization of investment in 2012, which was recorded at 71.2 trillion IDR. 

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