Economy chief minister expects 5.2 percent GDP growth in Q2

ECONOMIC GROWTH - JAKARTA. Coordinating Economic Minister Darmin Nasution has expressed his optimism that the economy will grow faster in the second quarter of 2019.

“Our economy will grow faster, supported by the post-harvest season in April and [the peaceful end] to the elections,” he said on Wednesday during an Idul Fitri open house at his residence in Jakarta.

The minister expected that growth would range 5.1-5.2 percent, compared to 5.07 percent growth in the first quarter.

Darmin said that the completion of many infrastructure projects would also help accelerate gross domestic product (GDP) growth, in providing a solid foundation for attracting more investors.

He added that last week, Standard & Poor's upgraded Indonesia's credit rating and the International Institute for Management Development (IMD) also raised the country's competitiveness ranking, which would also positively affect the investment climate.

Indonesia jumped from 43rd in 2018 to 32nd in 2019 out of the 63 economies in the IMD ranking, due to better government efficiency and improvements in infrastructure and the business climate.

“The IMD [ranking] is good news amid the slow global economic growth," noted Darmin. "Investment will arrive in the coming months as investors see that Indonesia is not only able to resist [the global slowdown], but is making constructive efforts [to improve its investment climate].”