BI projects 5%-5.4% economic growth in 2015

JAKARTA. Bank Indonesia (BI) forecasts that average economic growth will reach 5 to 5.4 percent this year, lower than its previous projection of 5.4 to 5.8 percent.

“Throughout the year, our economic growth is forecast to stay within a range of 5 to 5.4 percent,” the central bank’s communications executive director, Tirta Segara, said on Thursday.

He said consistency in accelerating realized government spending would be helpful in speeding up economic growth, which slowed down in the beginning of the year.

“The implementation of infrastructure projects and investment climate improvements will have crucial roles in pushing the country’s economic growth in 2015,” said Tirta.

Meanwhile, economic growth in the second quarter is predicted to remain limited but improve in the following quarters.

Externally, exports are expected to remain under pressure along with the global economy and commodity prices, which will remain low.

Investment is predicted to continue to show limited growth, along with the importation of capital goods, which remain weak, and realized infrastructure development, which has not been as fast as predicted.

Meanwhile, consumption is predicted to improve, as indicated by the consumer confidence index, which increased in May.

“BI forecasts that Indonesia’s economic growth in the second half of 2015 will improve, supported by increases in consumption and government investment, along with increased implementation of infrastructure projects and growing banking credit disbursement,” said Tirta. (ebf)