Economy to grow strongly in second half of the year: President

The economy would begin to revive in June and July and in September the growth would begin to accelerate to peak in November, Jokowi said.

Bogor (ANTARA News) - President Joko Widodo (Jokowi) predicted the countrys economy would grow strongly in the second half of the year after slowdown in the first six months of the year.

In the first half of the year, the countrys economy grew 4.7 percent or the lowest in many years on falling purchasing power of the people and global crisis.

"As we have expected the economy would grow 4.7 percent in the first half of the year," Jokowi said here on Wednesday, adding, in the second half of the year the economy would scale up.

The economy would grow stronger with spending of state budget and regional budgets starting in June, he said.

The economy would begin to revive in June and July and in September the growth would begin to accelerate to peak in November, he added.

In addition state companies and private companies are also expected to start big spending in the second half of the year, he said.

The president did deny negative external effects on the countrys economic growth.

Earlier, Bank Indonesias Executive Director of Communications Tirta Segara noted that exports have also failed to function as the driver of economic growth amid weak demand in international market.

The condition, however, is expected to improve in the second half of the year, Tirta said.

"Bank Indonesia predicted that a fairly strong growth would be recorded in the second half of the year with the implementation of infrastructure projects and credit expansion by banks," he said.

He said the central bank also would strengthen coordination with the government in controlling inflation and in providing fiscal stimulus to accelerate economic growth.

"BI would help the central and regional administrations in seeking to push for the realization of budget projects including infrastructure projects and to continue with structural policy, which would be the key for economic improvement in the future," he said.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2015