REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia Governor Perry Warjiyo said that the country's economy was estimated to grow 5.15 percent year on year (yoy) in the second quarter of this year. It would be lower than 5.2 percent in the previous quarter.

"Hopefully (the economic growth) in the second quarter (Q2) will be 5.15 percent, however it is still below the national spending capacity," Perry said here on Friday.

Inflation, which was still under control contributed to the economic growth recovery. The country's inflation until July this year was 3.18 percent yoy, which was relatively low and could help improve household consumption.

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The inflation was low, but it did not reflect stagnation in consumption, he said. According to Perry the growth of consumption was driven by spending for school cost, rents, and momentum of high consumption during Ramadhan and Eid al Fitr.

He said the pressure on rupiah exchange value that could trigger increases in prices of goods and imports had no significant effect in raising inflation and hampering economic growth. It was because both exporters and importers were quite compliant in readying themselves with foreign exchange hedging to reduce the risk of swelling exchange rate, he said.

"I am confident exporters and importers already protect themselves with hedging to mitigate the risk," he said.

The Central Bureau of Statistics is scheduled to announce the country's Q2 economic growth on August 6, 2018.

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