REPUBLIKA.CO.ID, JAKARTA -- The governor of Indonesia's central bank, Agus Martowardojo, predicted that the country will record higher economic growth in the second quarter and even better growth the next quarter.

"God willing, growth in the second quarter will be better because we know budget has been made available and procurement processes have also been carried out," he said after a meeting at the presidential office here on Wednesday (6/5).

Martowardojo is confident that budget spending will be higher, which will help to maintain Indonesia's economic growth, especially in terms of government spending and investment.

He also pointed out that the structural reforms carried out by the government had already met expectations.

"Support must be focused on certain factors, starting from relocation of fuel subsidy, establishing an integrated one-stop service, extension of authority to ministries/state institutions to ensure the setting up of the one-stop service system for licensing, and better infrastructure and power plant development," he emphasized.

Furthermore, Martowardojo admitted that he was more optimistic because the government has vowed to safeguard the economy to ensure its sustainability, besides ensuring a healthier level of current transactions by continuing to give incentives.

"So I believe these are good measures. Bank Indonesia can only give inputs and follow the developments. We believe with good coordination between the government and the bank, macroeconomic stability and financial system stability can be maintained," he affirmed.

He also admitted that the country's economic growth had slowed down to around 4.7 percent. However, he believes that with good structural reforms and budget spending that is supported by cooperation among regional governments over the realization of budget and licensing, including in land acquisition, the country's economy could still grow by between 5.4 and 5.8 percent.

Indonesia's current macroeconomic condition and financial system is well-maintained, in view of the country's exchange rate in 2014, which depreciated by 1.8 percent, and in 2015, by 4 to 5 percent, he noted.

"Other countries like Brazil and Turkey recorded depreciation of over 10 percent with high volatility. While conducting an intervention, Bank Indonesia always applies a combination of policies as we also need to prepare ourselves against outside conditions that need to be monitored closely. These include developments in the U. S., Europe, Japan, and China, as well as prices of commodities," he explained.

Martowardojo gave his assurance that Bank Indonesia will continue to coordinate with the government and will respond to any development in a situation with a combination of policies.

"The main issues are related to exchange rate, policy rate, foreign exchange reserves, macro-prudence, communication, cooperation between banks and coordination with the central bank," he remarked.

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