REPUBLIKA.CO.ID, SEMARANG -- Implementation of the government's infrastructure late last year has jolted the economy of Central Java into life.

The economy of the province grew 6.1 percent in the last quarter of 2015 as against only 5 percent in the previous quarter, head of Bank Indonesia representative office for Central Java Iskandar Simorangkir said.

Implementation of infrastructure projects, however, is not the only driver of the economic growth, Iskandar said, adding, there were also higher household consumption toward the end of that year.

"Religious and new year celebrations pushed up household demand," he said here on Wednesday.

Cumulatively , the central Java's economy expanded 5.4 percent in 2015 higher than previous year's record of 5.3 percent.

The country's economic growth was recorded at 4.79 percent in 2015.

The main contributors to the economic growth was the manufacturing sector, agricultural sector, forestry and fisheries sector, and construction sector.

The economic growth was also reflected in the brisker banking transactions of cash and non cash payments, Iskandar said.

The Semarang central bank office recorded a 37.81 percent growth year-on-year for cash payment in December 2015 as against a growth of only 11.84 percent in the same period in 2014.

Non cash payments grew 30 percent yoy in December, 2015 as against 9.92 percent in the same month a year earlier.

Withe the improvement in the economic condition, the central bank cut its benchmark interest rate (BI rate) from 7.25 percent to 7 percent in February this year.

The interest on deposit facility also was reduced to 5 percent and the interest on lending facility was cut to 7.5 percent.

"Bank Indonesia also decided to cut the primary minimum reserve requirement in rupiah from 7.5 percent to 6.5 percent," he said.

Ikuti Whatsapp Channel Republika