Household consumption would become one of growth engines, along with consumers` strong confidence and high expectation of improving income and wages, according to the central bank`s monetary policy report carried in its official website on Thursday.
Meanwhile, the government`s spending in the first quarter of 2012 was expected to grow at a slower pace than in the previous quarter according to its historical pattern. However, investment in the construction and non-construction sectors was expected to grow thanks to strong economic fundamentals, business players` optimism and accelerated infrastructure projects, the report said.
On the external side, the increasing risk of global uncertainty which reduced the absorbing power of main trade partners was expected to begin affecting export performance in the first quarter of 2012.
Yet the impact would still be manageable along with the diversified market for Indonesian products in emerging economies which still had good performance.
On a sectoral basis, the report said, the first-quarter economy was expected to grow at a relatively high pace in the agricultural, mining and industrial sectors, among others. (*)
Editor: Kunto Wibisono
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