Economic Growth Predicted to Continue In Second Quarter

Jakarta, InfoPublik - Domestic economy growth in the first quarter of 2016 is expected to continue to increase in the second quarter of 2016. This is mainly contibuted by  fiscal stimulus acceleration.

Bank Indonesia’s Communications Department  Executive Director Tirta Segara in Jakarta, Sunday (4/24), said that government consumption and investment is a major driver of economic growth in the first quarter of 2016.

In addition, government spending on goods and capital increased significantly, along with the acceleration of infrastructure projects in the first quarter of 2016.

"In line with this development, private investment is expected to begin to increase in the second quarter of 2016. Government household consumption is expected to remain strong, as indicated by retail sales and motor vehicles that began to grow positively as well as consumer confidence that continues to improve," said Tirta.

Meanwhile, he continued, the performance of some export commodities showed improvement, particularly textiles, electrical equipment and vehicles for passengers.

"Overall, economic growth is expected to be better in the second quarter of 2016, sustained by increased consumption and investment," he concluded. (Translator: Wilda Stiana)