TEMPO.CO, Jakarta - Bank Indonesia Governor Agust Martowardojo forecasted that Indonesia is expected to see slow economic growth in the second quarter of this year.
"I think the economic growth in the second quarter will be still the same as the first quarter," Agus said at his office on Friday, July 31, 2015.
Indonesia's economic growth in the first quarter of this was recorded at 4.7 percent.
According to Agus, the economic slowdown in the second quarter would occur as the state budget has not been absorbed.
"It's because the government is [fairly] new and the state budget, nomenclature, and the budget implementation list still need adjustment," Agus said.
However, Agus asserted that Indonesia's economy has improved since the current transaction balance showed a promising trend compared to last year. In addition, the inflation rate is predicted to be under control.
Agus admitted that China's economic slowdown would affect Indonesia's economy because Indonesia still depends on commodity exports, which prices continue to drop.
Therefore, Agus appreciated government's move to change the economic schemes from consumption-based economy to production-based economy. In addition, Agus suggested that the government would need to be consistent in implementing its policy for the monetary, fiscal and real sectors.
AYU PRIMA SANDI