Indonesian to grow 3.86%: Minister

Indonesian to grow 3.86%: Minister

JAKARTA: Indonesia's finance minister said Wednesday that he expects the economy to grow 3.86 percent in the third quarter compared with the same period of last year.

Such growth would be slightly higher than 3.50 percent on-year growth in gross domestic product in the second quarter due to a pick up in economic activity, Finance Minister Boediono said.

"We expect economic activity to accelerate in the third and fourth quarters," Boediono said. Private and public spending are likely to lead this increase, he added.

Improving growth prospects mean the country is likely to meet its 3.98 percent growth target this year, he added. Fourth- quarter growth is likely to be 5.76 percent on year, he said.

Latest figures for Indonesian trade in July show exports were recovering and imports picking up due to more investment.

Indonesia's economy has relied on government spending and local demand for most of the year amid falling global demand for its exports and a lack of investment. -- Dow Jones