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Economy Predicted to Rise in Third Quarter

15 September 2014 10:22 WIB

Gedung-gedung pencakar langit di pusat kota Jakarta, 11 Juli 2014. Pertumbuhan gedung pencakar langit di DKI Jakarta mencapai 87,5% hanya dalam jangka waktu 3 tahun, tepatnya dalam periode 2009-2012. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - Deputy Finance Minister Bambang P. S Brodjonegoro estimated that economic growth in the third quarter will be slightly higher than the previous quarter with 5.1-5.2 percent. “The main source is still from public consumption with addition from export and investment,” Bambang told Tempo on Sunday.

He said government consumption started growing in the third quarter and will increase in the fourth quarter. However, he did not mention growth projection until the end of the year regarding possible subsidy rise in the fourth quarter. “Fuel price increase positive impact will show itself in 2015.”

Bank Indonesia Governor Agus Martowardojo predicted that economic growth in the third quarter would not be much different from in the second quarter. Bank Indonesia estimated that economy will grow 5.1 to 5.5 percent in the third quarter.

He said household consumption will decrease in the third quarter, but government consumption and investment sill rise. Investment rate will also increase. “Generally, consumption has the most effect,” he said.

Ahmad Erani Yustika, economist from INDEF, is optimistic that economy will rise in the third quarter with 5.5 percent. “Higher that the second quarter,” Erani told Tempo on Sunday.

The main factor that boosts economic growth is government consumption. “Government consumption is better than the previous quarter,” he said, adding that public consumption will not increase significantly even though there were school holidays and back-to-school moments in July and August.

He further said that investment rate would improve than the previous quarter. However, he did not mention which sector that contributes to economic growth significantly.

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