Second quarter growth lower than expected: BI

JAKARTA. Bank Indonesia (BI) has said second quarter growth was slower than expected and that this was sparked by various factors including slow government spending, weak public consumption and the postponement of several economic projects.

Public consumption fell short of expectations as this year’s bonus salaries for civil servants will be paid in the third quarter, BI Governor Agus Martowardojo said at the House of Representatives on Wednesday.

"Government spending was also slower [than expected]," Agus said as reported by Antara.

He expressed optimism, however, that the economy would still expand 5.11 percent in the second half of the year.

The central bank predicts that the economy will grow at above 5.2 percent year-on-year in the third and fourth quarters.

As a result, BI will keep its economic growth forecast for this year at a range of between 5 percent and 5.4 percent year-on-year, Agus added.