Jakarta, InfoPublik – Bank Indonesia Governor Agus Martowardojo said Indonesia's economic growth in Q1 of 2018 remained strong underpinned by domestic demand.

"GDP growth in the first quarter of 2018 is 5.06 percent (yoy), higher than the same period in the previous year at 5.01 percent (yoy). It is underpinned by the rising of investment and private consumption," Agus said in Jakarta on Thursday (5/17).

He also said investment grew at a high rate of 7.95 percent (yoy), up from 7.27 percent (yoy) in the previous quarter. It became the highest rate in five years.

Investment growth was mainly driven by improved non-construction investment to support the increasing production processes need. Building investment was also still growing high in line with government infrastructure projects.

According to him, private consumption which remained strong was mainly driven by increased spending related to the regional head elections. The strong domestic demand encouraged the growth of imports, especially imports of capital goods and raw materials.

Meanwhile, exports continued to grow albeit slowing compared to the previous quarter. Improvements in economic performance occurred in Java, Bali, Maluku, and Papua.

"In the future, Bank Indonesia predicts that the 2018 economic growth will remain in the range of 5.1 to 5.5 percent," he said. (Translator: Wilda Stiana)