Indonesia's Economy Predicted to Grow 5.8 Percent in First Quarter

Jakarta (Antara) - Finance minister Chatib Basri had predicted Indonesia's economy grew 5.7 to 5.8 percent in the first quarter of 2014, primarily due to consumer spending. The minister said here on Monday consumer spending was expected to rise in March, although the impact had not been felt as of now. He said the country's economy had grown also because of the improving performance of national exports. He said the economic growth until the end of this year was still predicted to be at the estimated range of between 5.8 percent and 6.0 percent, which was slower because the government was still conducting economic stabilization efforts to improve its current account. "Sources of growth were reduced because the interest rate was up, causing the economic growth in 2014 to slow down. The government wanted the current account deficit to be stable until the end of 2014," he said. He added that the economic growth will improve again in 2015 to reach up to 6.1 percent, supported by investment performance and government spending following positive sentiment for the new government. "My prediction was if the policy was no longer tight and the target of current account deficit was met, the government will have room to maneuver. With contribution from investment and government spending, it was hoped it could reach 6.1 percent," he said. (*) Reporting by Satyagraha