Indonesian Economy to Grow 6.3 Percent

30 Oct

Indonesian Vice President Boediono (2nd L) visits an exhibition of small and medium scale industries in Jakarta on June 23, 2010. Small and medium scale industries are potential to create employment and to generate foreign currencies through export, data said in 2008 there was 7.7 million people working in the sectors and contributed 7.52 percent of Indonesias total exports.

MATARAM, – The Indonesian economy is expected to expand 6.0-6.3 percent this year on strong private consumption and exports, a central bank official said. Household consumption was expected to contribute 4.9-5.2 percent, government consumption 4.2-4.5 percent, exports 13.4-13.7 percent, and imports 17.9-18.2 percent to the 2010 economic growth, Bank Indonesia Monetary Management Director Handar said at a seminar here on Thursday.
The strong private consumption would be the result of non-food consumption, car and motorcycle sales, electronic goods sales and consumer goods imports, he said. On the financing side, consumer credit growth was still high, suggesting that private consumption remained strong, he said.

“Even the economy is expected to pick up in the next several years. In 2011 it is projected to grow 6.0-6.5 percent,” he said.
Investment would likely continue to increase particularly starting the second semester of this year along with rising demand for additional production capacity, he said. According to him, on the production side, several sectors were expected to grow at a higher pace, including the transportation and telecommunication sector, the financial sector and the construction sector.
Since early this month exports also had been on the increase in line with the global economic recovery and improving commodity prices on the global market, he said.

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Posted by on October 30, 2010 in Indonesia


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