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Sri Mulyani Expects Investments to Soar in Second Semester

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6 August 2018 18:00 WIB

Finance Minister, Sri Mulyani Indrawati. AP

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani hopes that investments in this year’s second semester will soar following Indonesia’s 5.27 percent economic growth in the second quarter of 2018.

Based on the gross domestic products, exports dropped by 1.19 percent while imported goods rose by 2.56 percent.

Sri Mulyani said the increased raw materials and capital goods imports should spell a substantial increase in investments. However, the investment growth in 2018’s second quarter only reached 5.87 percent, which is lower compared to the growth of gross fixed capital formation (PMTB) in other quarters.

“The higher investments might just emerge in the second semester,” she told Tempo at the Presidential Palace today, Monday, August 6, 2018. 

Read: Sri Mulyani: State Income Advances by 16 Percent

With increased investments from higher raw material imports and imported goods, plus the government's safeguarding trust and stable consumption growth at above five percent, Sri Mulyani hopes economic growth would stay positive in the second semester this year. 

Sri Mulyani said the 5.27 economic growth in the second quarter was above the government's expectations of 5.16-5.17.

"The growth being above expectations is good, especially when it stems from strong domestic demand," Sri Mulyani said.

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