Coordinating Economic Affairs Minister Darmin Nasution said he expects the economy to grow between 5.1 and 5.3 percent from April-June amid strong global consumption rates that could spur increased Indonesian exports.
“People in Europe and the United States are entering summer when economic activity is rather high […] I really believe our economy might grow at above 5 percent, maybe between 5.1 percent to 5.3 percent,” Darmin told reporters on Monday (26/06) at his official residence in Jakarta.
Darmin hosted an open house celebration a day after Idul Fitri, entertaining guests such as Financial Services Authority chairman Wimboh Santoso, Deputy Energy and Mineral Resources Minister Arcandra Tahar and Bank Mandiri president director Kartika Wirdjoatmodjo.
The economic minister also said local consumer spending likely rose during the Islamic holy month of Ramadan, helping to further bolster the economy.
Indonesia, Southeast Asia’s largest economy, recorded 5.01 percent growth in the January-March period, higher than corresponding periods in 2016 and 2015 as the country’s commodity export market shows healthy signs of recovery.
Finance Minister Sri Mulyani said in May that both Indonesian exports and imports are “extremely good,” confirming a trend of rising prices and increased volume of the country’s exports.
“The first quarter performance should make us excited, because we can start to see all the signs that government policies have shown some results from the demand and supply side,” Sri Mulyani said.
Indonesia exports oil, coal and copper as well as palm oil, rubber, cocoa and coffee beans to countries around the world.
However, Bank Indonesia, the country’s central bank, was less optimistic, saying earlier that consumption and export rates had been lower than expected, prompting the bank to cut its GDP growth estimation to 5.1 percent for the second quarter, from 5.2 percent earlier.