Gov't spending expected to spur Indonesia's growth this year: official
A senior official at Indonesian Central Bank (BI) said on Wednesday that the nation's economy would significantly grow in the
third and fourth quarters this year along with massive disbursement of government spending and conduction of regional elections
scheduled later in the year.
"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.