"Several infrastructure projects were completed last year. They will no doubt become a stimulus. The national economy will increasingly become stronger if things run normally and there are no shocks anymore," director of the state finance and monetary analysis at Bappenas, Sidqy LP Suyitno, said here on Wednesday.
On the external side, the Fed, which is expected to remain unchanged this year, will have a positive impact on Indonesia.
"I think it will perform better as the Fed rate will not increase and accordingly, the rupiah will not come under too much pressure. What is more, the realization of investment is also on the increase," he said.
The Central Statistics Agency (BPS) announced earlier in the day that the economy grew by 4.92 percent year-on-year in the first quarter of 2016.
The first-quarter growth was fueled by government spending, and high investment.
The high government spending in the first quarter contributed to the gross fixed capital formation (PMTB), which grew by 5.57 percent. (*)
Editor: Heru Purwanto
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