BI Gov Optimistic on Q3 Growth
15 September 2014 22:54 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Agus Martowardojo said he was optimistic that economic growth in the third quarter will not be much different from the second quarter's. Agus said last Friday that the central bank expects quarter three's economic growth to be around 5.1 to 5.5 percent.
Meanwhile, Deputy Finance Minister Bambang P.S. Brodjonegoro said the government is projecting a slight increase for growth in the third quarter, which is in the range of 5.1 to 5.2 percent.
"The main source of growth remains on consumption, plus the rate of exports and investment," Bambang told Tempo yesterday.
According to Bambang, government consumption began to grow in the third quarter and will increase again in the fourth quarter. Bambang did not mention the year-end growth projection, related to the possible fuel price hike in the last quarter of this year. However, Bambang said that a fuel price impact will be seen by no sooner than 2015.
Coordinating Minister for Economic Affairs Chairul Tanjung said BI's decision to keep interest rates at 7.5 percent would restrain domestic consumption as prices of goods become expensive. However, this can be helped by improving the investment and other sectors.
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