Economy grew by 2.47% in first quarter<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The economy grew by 2.47 percent in the first three months of
\n2002 compared to the same period last year, fueled mainly by
\nstrong consumer spending, the Central Bureau of Statistics (BPS)
\nreported on Wednesday.<\/p>\n
Although the growth rate is lower than what most analysts had
\npredicted -- including Bank Indonesia, which foresaw a 3.2
\npercent growth -- optimism still remains that the government's
\nfull-year target of 4 percent growth in gross domestic product
\n(GDP) can be achieved.<\/p>\n
Bank Indonesia deputy governor Miranda Goeltom said the
\neconomy would pick up faster in the coming quarter, still on the
\nback of strong consumer spending.<\/p>\n
\"I think we'll grow faster in the second quarter and the
\ntarget of 3.5 percent to 4 percent growth is expected to be met,\"
\nMiranda said, referring to the central bank's full-year growth
\nforecast.<\/p>\n
Standard Chartered Bank economist Fauzi Ichsan said that
\nalthough most analysts had been overly bullish on the first
\nquarter GDP figure, the actual growth figure was not bad.<\/p>\n
\"I think the overall picture is still good,\" he said, adding
\nthat the government should be on track to meet its growth target
\nfor the year as long as it could maintain political stability and
\nthe pace of the economic reform program.<\/p>\n
BPS also expressed optimism that this year's economic growth
\nwould be better than last year's 3.2 percent.<\/p>\n
\"If the situation remains conducive, economic growth this year
\ncould fare better than last year,\" said BPS deputy chief La Ode
\nSyafiuddin in a news conference.<\/p>\n
BPS said that the GDP grew by 2.15 percent in the first
\nquarter from the fourth quarter of last year.<\/p>\n
Indonesia's economic growth still hinges on consumer spending
\nas the current slump in the world's economy has been dragging
\ndown the country's exports, while foreign direct investment
\nwould remain low as the country has yet to address various
\nproblems at home, including legal uncertainty, labor unrest and a
\nsecurity problem.<\/p>\n
Foreign direct investment approval was down 90 percent to
\nUS$292 million in the first quarter of this year compared to
\n$2.44 billion in the same period last year, according to a report
\nfrom the Investment Coordinating Board (BKPM).<\/p>\n
Reports of an improvement in investor confidence in the
\ncountry during the first quarter, analysts said, was mostly
\ndominated by portfolio investment as shown in the rising stock
\nmarket index and 10 percent rise in the value of the rupiah to
\nthe U.S. dollar, considered to be one of the best performing
\nmarkets in the region.<\/p>\n
Although the economy could grow by 4 percent this year, the
\ngovernment is still facing an uphill task as the growth figure is
\nnot sufficient to absorb the millions of unemployed people.<\/p>\n
Experts have said that the country needs to have growth of
\nbetween 6 percent and 7 percent to be able to absorb the huge
\nunemployment.<\/p>",
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