ADB spokesman Edimon Ginting explained that Indonesia was also able to maintain its economic stability while the trend of private consumption gets increasing in the run up to the 2014 general election.
Jakarta (ANTARA News) - Supported by private consumption and increase investment, Indonesia`s economic growth is predicted to reach 6.4 percent in 2013, according to Asian Development Bank (ADB) spokesman Edimon Ginting.

"It is assumed that private consumption, triggered by increasing employment and average minimum wages and civil servants` salary, will strengthen this year," Edimon said when explaining ADB annual economic report here on Tuesday.

He explained that Indonesia was also able to maintain its economic stability while the trend of private consumption gets increasing in the run up to the 2014 general election.

"Increased spending ahead of the legislative and presidential elections in 2014 is predicted to contribute to increased consumption in the second half of 2013," he noted.

Besides, he said private as well as government investments also showed a healthy expansion which is marked with increased credits from international institutions, the decline in interest rates, increased budget allocation for infrastructure, and the record of strong economic growth.

"Indonesia is still the third best target of foreign direct investment after China and India, and that the investors will not question the short term impact of the general elections," he said.

Edimon added that the relatively stable economic growth was due to increased export performance in 2013 which was encouraged by strong growth in China and other countries.

"Export is projected to continue increasing in 2014 because of improvement in other industrial countries," said Edimon Ginting, Deputy Country Director at ADB`s Indonesia Resident Mission.

According to him, the improvement of such a condition will continue to prevail until next year, and therefore economic growth in 2014 is predicted to be higher that that of this year to reach 6.6 percent.

"With the momentum of growth in Southeast Asia, Indonesia at present is on the right course toward a long term economic growth," Edimon noted.

He said average inflation rate was predicted to be at a reasonable level of 5.2 percent in 2013 and 4.7 percent in 2014 with an assumption that there would be not fuel oil price hikes in the next two years. (*)

Editor: Heru Purwanto
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