BI Says Indonesian Economy Remains Overshadowed by Strong Global

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Petir Garda Bhwana

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  • Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

    Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

    TEMPO.CO, Jakarta - Strong global headwinds continue to cast a shadow over Indonesia's economy, stated Executive Director of the Bank Indonesia (BI) Communication Department Onny Widjanarko.

    The ongoing export shrinkage has improved in spite of ebbing global demand and lower international commodity prices, Widjanarko noted in a statement received at Jakarta, Tuesday.

    The modest gains come amid positive manufacturing export growth, particularly automotive exports to the ASEAN, and gold exports.

    Investment, non-building investment in particular, remains weak, yet the latest surveys hint at an upsurge forecast in the fourth quarter of 2019 as business confidence continues to rise.

    In the meantime, building investment growth has been maintained by the development of national strategic projects.

    Household consumption growth remains stable, backed by low inflation and social aid program (bansos) disbursements.

    Moving forward, the policy mix instituted by BI, in conjunction with the government, is expected to maintain the economic growth momentum in Indonesia, which BI forecasts towards the lower end of the 5.0-5.4 percent range in 2019 before increasing towards the midpoint of the 5.1-5.5 percent range in 2020.

    ANTARA