BI Revises Down Economic Growth To 5.1 Percent

Jakarta (Antara Bali) -- Bank Indonesia (BI) has revised down its growth estimation for the national economy for 2015 to 5.1 percent from 5.4 percent.

"For the whole of 2015, Bank Indonesia predicts the economic growth will reach 5.1 percent, higher than last year's (5 percent)," Governor of Bank Indonesia Agus Martowardojo said during a meeting with the House of Representatives' (DPR) Budget Committee here on Thursday.

After the economy grew at a slower pace of 4.7 percent year-on-year (yoy) in the first quarter, the central bank predicted the economy will expand 4.9 percent yoy in the second quarter, 5.3 percent yoy in the third quarter and 5.4 percent yoy in the fourth quarter.

"The economic growth hike in the second quarter of 2015 will be fueled particularly by government consumption and development investment, along with the increasing number of government projects," he stated.

Exports, which began showing signs of improvement, will also contribute to the economic growth, he added.

"The economic performance will steadily improve in the third and fourths quarter of 2015, fueled by rising consumption and investment in line with the government's policy to increase fiscal facilities and the banking industry's move to channel more credits," Martowardojo explained.

In addition, the rising number of the infrastructure projects of the government is expected to help boost investment in the construction sector in the second quarter of 2015, the BI governor pointed out.

On the external side, the gradual increase in exports will encourage the improvement of economic performance in the second half of 2015, he affirmed.

"From the external point of view, exports will gradually improve, thanks to the global economic recovery. However, the export performance can be impeded by the expected low commodity prices due to low global oil prices and low demand from China," Martowardojo remarked. (WDY)