Economic growth projected to be at 5.2 percent

Illustration. Container loading and unloading activities from cargo trains at Kalimas Station, Surabaya, East Java. The Central Statistics Agency (BPS) noted Indonesia's economy in the second quarter of 2018 grew 5.27 percent, higher than the same period of the previous year of 5.01 percent. (ANTARA PHOTO/Didik Suhartono)

Jakarta (Antaranews Bali) - Finance Ministry`s head of Fiscal Policy Office (BKF) Suahasil Nazara has estimated that Indonesia`s economic growth during 2018 is projected to be at 5.2 percent.

"By looking at 5.17 percent in the first semester of 2018, we projected that the economic growth this year will be 5.2 percent," Suahasil remarked at the Finance Ministry office on Friday.

He said the key to the growth projection of 5.2 percent throughout 2018 is that household consumption is expected to continue to grow above 5.1 percent and investment will reach 6.9 to seven percent.

Exports will be pushed around seven percent to eight percent, while imports which in the second quarter of 2018 had 15 percent dropped to around 10 percent due to the weak rupiah that made prices more expensive.

"We see the trend of reducing import growth, in addition to the measures that the government has taken by carrying out B20 biodiesel, project reviews do not need to be built, infrastructure is encouraged to use high local content, and the application of PPh on consumption of consumer goods," Suahasil said.

He also explained that economic growth during the first half of 2018 was driven by consumption that grew above 5.1 percent and investment by 6.9 percent.

"Indeed we see exports are still positive, but imports during the first half of 2018 increased by 13.9 percent," he said.

In the meantime, Indonesia`s economic growth in the third quarter of 2018 is estimated to be in the range of 5.13 percent to 5.25 percent. (WDY)