TEMPO.CO, Jakarta - Bank Mandiri`s chief economist Andry Asmoro projects Indonesia's economic growth in 2019 at 5.22 percent. The growth, he said, is supported by excellent government spending allocations to date.
"The acceleration of government spending has been well. But the challenge remains to encourage exports, one is to push wholesale spending to boost the domestic economy," Andry said yesterday.
According to Andry, government consumption growth rate increased from 2.71 percent in Q1/2018 to 5.21 percent in Q1/2019. He said the growth was sustained by preparations for the 2019 elections and the actualization of higher social assistance.
"In this political year, investors tend to wait and see," he said.
He estimated that in Q2 this year, foreign investments will grow again as the political uncertainties will subside and a new government cabinet will be established.
Andry said that Indonesia's economy is still haunted by volatility due to the US-China trade war sentiments, which had caused endless exchange rate fluctuations and capital outflow.