Government expenditure stood at 54.8 percent.Palembang (ANTARA News) - Bank Indonesia (BI/the central bank) has predicted that South Sumatra will experience a higher economic growth in the fourth quarter of 2012 due to increasing government spending, exports and commodity prices.
"The government spending usually increases in the fourth quarter which would generate slight increase in economic growth. Moreover, the prices of palm oil and rubber have bounced back," BI researcher Gamal Muhammad said here on Sunday.
He stated that government expenditure stood at 54.8 percent. In addition, indirect spending reached 60.7 percent and the direct one stood at 45 percent.
However, the economic growth rate decreased by 5.9 percent in the third quarter of 2012 compared to 6.2 percent in the second quarter of 2012).
"The budget absorption is higher the 43.5 percent at the beginning of the fourth quarter of 2011," he explained.
Muhammad added that the economic growth is in line with the Revised 2012 State Budget which was set with a deficit of Rp357 billion, which is in contrast of the previous planned surplus of Rp197 billions.
Cumulatively, he further said, the economic growth in South Sumatra was predicted to be higher even though it will possibly decrease to a range of 5.9-6.4 percent year on year compared to the 6.5 percent in 2011.
"In spite of the decrease, it will still stand within a 6.0 percent range amid global economic uncertainties as well as the fall in rubber price,"he said.
(Uu.J010/A014)
Editor: Priyambodo RH
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