"It was in line with particular efforts carried out by the government to accelerate spending on capital goods, including to prepare the regulations. Domestic consumption was expected to increase along with much-expected public income growth related to the conduction of simultaneous regional elections slated to be held in the fourth quarter this year," BI Executive Director Tirta Segara said in a statement.
Indonesia registered a 4.71-percent growth in the first quarter this year, or lower than 5.2 percent in the same period last year. The slow growth pace in the first quarter was caused by the slow government spending, low investment and low domestic consumption as well.
Indonesia saw minimum spending to acquire capital goods at 30.2 trillion rupiah (about 2.234 billion U.S. dollars) or 11 percent from the allocation set in the budget as of the first half this year.
The nation registered a 4.67-percent growth in the second quarter this year. The government expected to see a 5.2-percent growth by the end of the year.