Jakarta (Antara Bali) - Economist from Permata Bank Josua Pardede predicted the country's economy would grow 5-5.3 percent this year or slightly higher than last year's growth.
"Slowdown was recorded in the first quarter of this year but in the whole year the economy is predicted to expand by 5-5.3 percent," Josua said here on Wednesday.
This year, the spending by the government is quite large though it would depend much on realization and implementation of its infrastructure projects, he said.
In addition, investment tends to increase especially if President Joko Widodo would meet his pledges, and political stability could be maintained and law enforcement is upheld,he said.
Josua said Indonesia's economic development in 2015 would be driven mainly by investment sector and household consumption, which have been growing.
Investment growth would be boosted mainly by government spending in infrastructure projects and household consumption is expected to increase with lower inflation as a result of the falling prices of oil fuels as well as prices which are controlled by the government.
Josua described the country's economic condition as stable at present and the 'One Stop Service' adopted by the Capital Investment Coordinating Board is expected to boost investment.
The public consumption is also stable especially as the prices of oil fuel began to decline , he added.
He noted, however, that there has been no significant progress made to boost exports with the oil and commodity prices remain low.
He said government spending in the first three months of the year also was not significant, but realization of massive government infrastructure projects is expected to start only in the second quarter this year.
Meanwhile, the tertiary sectors such service industry, transport and warehousing , telecommunications and financial services are expected to grow strongly, but the manufacturing sector which contribute around 20 percent to the country's economy , is expected to remain stagnant this year, he predicted.
