Jumat 06 Nov 2015 11:17 WIB

BI: Economic growth driven by investment and consumption

Rep: C09/ Red: Julkifli Marbun
BPS
BPS

REPUBLIKA.CO.ID, JAKARTA -- Central Statistic Agency (BPS), released that Indonesian economy growth was at 4.73 percent (yoy) in the third quarter of 2015. It was higher than the previous quarter, at 4.67 percent (yoy).

Deputy Director of Department of Communications Bank Indonesia (BI), Andiwiana, said the condition indicated strong momentum of economic growth in the future. Increased economic growth in the third quarter of 2015 was primarily driven by a stronger government role, either from government consumption and investment.

"This is reflected in the progress of significant infrastructure projects in the mid of waiting for private investors," he said, Thursday (5/11).

On the external side, the low commodity prices and weak economic growth in trading partner countries, such as the United States, China, and Singapore, made exports were still deeply contracted. On the other hand, import growth was slightly restrained in line with improvement in domestic demand.

BI assessed Indonesian economic recovery would continue in the fourth quarter of 2015. The government role was expected to be stronger, through accelerated implementation of infrastructure projects, which was able to support investment performance.

Private investment was also expected to increase through economic policy package, including deregulation that supported investment.

Meanwhile, consumption was expected to improve with the implementation of simultaneous elections in December 2015. In addition, macroprudential policy easing was also expected to have an impact on economic activity in the fourth quarter of 2015.

"With macroeconomic stability, Indonesian economy will grow at a higher rate," he added.

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