Indonesia's economy to grow 6% in 2Q 2010: WB

15:07, June 23, 2010      

Email | Print | Subscribe | Comments | Forum 

Indonesia's economy is expected to grow 6 percent year-on-year in the second quarter this year after reaching 5.7 percent in the first quarter and to be approaching 6. 5 percent by the fourth quarter, the World Bank said here on Wednesday.

Subham Chaudhuri, chief economist of World Bank's Jakarta office in his presentation of the bank's "June Indonesia Economic Quarterly Report" released here said that the acceleration will see Indonesia's economy expanding by 5.9 percent in 2010 as a whole, 0.3 percentage points more than was projected earlier in the year and by around 6.2 percent in 2011.

"Indonesia's economy continues to consolidate its recovery from the global economic and financial crisis. Slower government spending early in the year slowed growth but private sector demand is likely to continue in supporting activity," said Chaudhuri.

He said that global financial market affected Indonesia in May, but the economy and local financial markets proved robust to sudden and large capital outflows. The reports said that even with this market volatility and the uncertainty surrounding developed economies' outlook, Indonesia's economy looks set to continue to strengthen.

Chaudhuri said that growth in domestic demand will drive the overall economy's acceleration.

Besides, he said, the current account will continue to decline as imports growth continues to outpace export growth, led by imports of capital and machinery, thus supporting the robust domestic investment growth and expansion in the economy's capacity. He also said that inflation is likely to continue rising on higher lending, demand and commodity prices. "But, rising power tariffs will have small impact," said the report, referring the government's decision to raise power tariff starting on July 1.

Chaudhuri also said that government revenue may be larger and deficit smaller than expected.

"Government spending was weak early in the year, while growth in economy-wide prices may be faster than expected, lifting revenues," he said.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion