Bank Indonesia Predicts 5 To 5.4 Percent Economic Growth

Jakarta (Antara Bali) -- Bank Indonesia (BI) has predicted that the Indonesian economy will grow 5 to 5.4 percent on an average in 2015, lower than the previous projection of 5.4 to 5.8 percent.

Executive Director of the Communications Department of BI Tirta Segara said during a press conference here on Thursday that it will help to recover the sluggish economic growth of the first half of the year if the government was consistent in its efforts to realize its spending budget.

"The implementation of infrastructures projects and improvement of the investment climate will push the economic growth in 2015," he affirmed.

BI also estimated that the growth of the Indonesian economy in the second quarter of 2015 will be limited, which means it will continue to grow but will be slow.

Furthermore, exports will continue to feel the pressure, affected by the global economic slowdown and low prices of commodities.

Segara further noted that investments will see limited growth due to low imports of capital goods and the slow realization of infrastructure projects.

However, the central bank is optimistic that the economic growth will improve in the second quarter of 2015, as indicated by the rise in the consumer confidence index in May 2015.

"BI predicts that economic growth in the second quarter of 2015 will be better, supported by the increase in consumption, implementation of the government's investments through infrastructure projects, and a rise in bank loans," Segara affirmed. (WDY)