"I expected the growth would be close to 5.1 percent in the whole of 2016. Therefore, the growth rate must be higher than 5.1 percent 5.1 percent in the last quarter of 2016," Darmin said here on Monday.
He said he appreciated the economic performance with a growth of 5.02 percent in the third quarter of this year although the growth was slightly less than expectation.
He said the 5.02 percent growth rate was slightly below expectation despite positive growth in almost all sectors because of a number of factors such as government spending which decreased in the third quarter.
Therefore, he said he expects improvement in various business sectors such as in spending that in the last quarter of 2016 the economic performance would be better.
The mining and quarrying sector began to grow positively in the third quarter on improved prices of commodities after two years of contraction, he noted.
"For the first time the mining sector grew after an increase in the coal price. This would encourage coal producers," Darmin said.
Head of the Central Bureau of Statistics (BPS) Suhariyanto said the growth of 5.02 percent in the third quarter was a good performance amid the global slump.
Suhariyanto also predicted the countrys economy would grow 5.1 percent in the whole year.
"Perhaps the 5.2 percent growth target as set in the state budget was too high as it would require a growth rate of at least 5.36 percent in the last quarter of the year," he said.
For that purpose, the household consumption and government spending have to play a greater role in driving the economic growth in the last quarter of 2016, he said.
"There is still possibility. We hope that household consumption would rise in Christmas and year end in December. Normally in the last quarter spending of budget is higher," Suhariyanto.
In the third quarter of 2016, contraction was still recorded in the government spending by 2.97 percent with exports decreasing 6% and import shrinking 3.87 percent.
Household consumption still the main driver contributing 55.32 percent to the GDP , followed by Gross Fixed Capital Formation (PMTB) 31.98 percent, exports 17.74 percent, government spending 8.97 percent and imports 16.91 percent.
Meanwhile, Bank Indonesia attributed the cut in the government budget to the decline in the countrys economic growth to 5.02 percent in the third quarter from 5.19 percent in the second quarter of this year.
Executive Director for Communications of the central bank Tirta Segara said the slashing of government budget caused the the slower growth in the third quarter.
"Low government consumption was a result of the cut in the government spending and shrinking exports was a result of global economic crisis and low commodity prices," Tirta said.
Tirta said election of regional leaders would contribute to driving consumption non profit institutions .
He said he hoped implementation of the series of government economic policy packages would be more effective to boost investment (*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
