BI revises down growth target

Jakarta (ANTARA News) - Bank Indonesia (BI/the central bank) once again revised down Indonesias economic growth projection to 4.7-5.1 percent this year.

"BI estimates that the countrys economic growth in 2015 would be at a range of 4.7 percent and 5.1 percent, down from previous estimate at 5-5.4 percent," BI Governor Agus Martowardojo said in a meeting with the the Houses (DPRs) Budgetary Committee here on Tuesday.

The central bank governor explained that in the first two quarters of 2015, the countrys economic growth still slowed down. The first quarter growth was recorded at 4.72 percent and the second one at 4.67 percent.

There are still external factors, he said. Global economy is still uncertain and commodity prices in the global market are going down.

Internal factors that caused low economic growth included weak consumption and the government investment, particularly in the realization of infrastructure projects, did not live up expectation.

"We predict better growth in the third and fourth quarters of 2015. The second semester growth will be higher. It will be boosted by governments accelerated expenditures and increasing realization of infrastructure projects," the BI governor said.

Regarding the economic growth projection for 2016, Martowardojo is confident that growth in 2016 will be better than that in 2015. The global economy will be improving fueled by improvement of economies in advanced countries.

"We predict worlds economic growth at 3.8 percent, up from 3.3 percent in 2015. It will give positive impact to Indonesias exports," he said.

Bank Indonesia predicted that Indonesias economic growth in 2016 will be recorded at a range of 5.3 percent and 5.7 percent. This is slightly lower than its previous projection of 5.4 percent - 5.8 percent.(*)