TEMPO.CO, Jakarta - Bank Indonesia's (BI) newly-appointed governor Perry Warjiyo said that a surge in import is one of the factors that makes him doubt that Indonesia will achieve an economic growth rate of 5.3% this year.
"Our export growth is quite well, but it is outperformed by a surging import; causing a low net external demand," Perry said in a press conference here on Friday, May 25.
A higher import, Perry said, also affects the current account deficit (CAD). The central bank had predicted a CAD of 2.1 by this year-end, but that outlook has risen to 2.3 percent.
Perry was sworn into office on May 24. At the time, he said that Indonesia cannot achieve a growth rate of 5.3 percent this year, and he is targeting 5.2 percent instead.
Read: New BI Governor: Economy Cannot Grow 5.3 Percent Yet
"Of course, we want higher growth. But there are several aspects that cannot support our economy to grow 5.3 percent this year," Perry said after his inauguration.
Another factor that may dampen the economic growth, he said, is the low growth of household consumption. According to the Central Statistics Agency (BPS), Indonesia's household consumption in quarter one only grew 4.95 percent—just 0.1 percent higher than in Q1/2017 and down from Q4/2017's 4.97 percent.
Read: Indef: 5 Tasks of New BI Governor Perry Warjiyo
Nevertheless, Perry said there are factors that will contribute to Indonesia's economic growth, including high foreign commodity prices and ample fiscal stimuli.
ADAM PRIREZA
