Recent improvements in Indonesia's macroeconomic indicators are improving confidence in the economy as a whole, with the central bank's latest survey showing estimates of higher growth built on more investment and a continued increase in bank lending for the year.
With inflation in check, coupled with a fairly steady rupiah, the economy is expected to have expanded between 5.1% and 6% on-year during the second quarter, and is expected to continue growing at the same levels throughout the year, The Jakarta Post reported on Monday (23/7/07).
Growth may even reach 6.47% as investments and exports pick up further, according to a quarterly survey on the economy conducted by Bank Indonesia (BI). The survey involved 100 economists, market analysts and academics in 13 major cities throughout the country.
The survey says that local and foreign investments will increase during the second half of this year, as Indonesia's exports grow by between 15.1% and 22.5%.
The higher investment will echo robust activity in the country's main economic driver, consumption, which will be supported by relatively stable consumer prices, while the rupiah remains between Rp9,001 and Rp9,500 to the US dollar, creating a stable environment for trade activities.
The government is expecting 6.3% full-year growth for 2007, and 6.6% for 2008, on inflation of 6.5%.