BI optimistic growth to stay at target range of 5.1-5.5 percent

BI optimistic growth to stay at target range of 5.1-5.5 percent

(ANTARA /Akbar Nugroho Gumay)

Jakarta,  (ANTARA News) - Bank Indonesia (BI) Deputy Governor Dody Budi Waluyo is optimistic that the country`s economic growth will stay within the target range of 5.1 percent to 5.5 percent this year.

"We remain optimistic although the interest rate hike will slightly correct the projection at the start of this year but it will not change our target range of 5.1 percent to 5.5 percent," he said after a discussion held at the Center for Strategic and International Studies (CSIS) here on Wednesday.

Dody said the economic growth this year will be much contributed by investment and consumption.

"If we look at consumption, it will be better than BI`s forecast. Political and sport events will boost our consumption," he said.

He said consumption contributed 54 percent of the country`s economic growth. Therefore, if the factor increases slightly it will be able to push the economic growth, he said.

The World Bank has revised downward its 2018 economic growth forecast for Indonesia to 5.2 percent from 5.3 percent previously.

The forecast is in line with the slow global economic growth projection and the declining trade flow from its recent highest level, Country Director of the World Bank Indonesia, Rodrigo A Chaves said at the Indonesia Stock Exchange (BEI) here on Wednesday.

"We project the Indonesian gross domestic product to grow 5.2 percent in 2018," he said.

According to the World Bank, the rising trade protectionism and the real risk of the recent global trade may stop and burden Indonesia`s exports, thus hampering its growth.

(S012/a014 )