Bank Indonesia, the Central Bank, Revises Downward This Year’s GDP Growth Target

Jakarta, 18 Dzulqa’dah 1437/21 August 2016 (MINA) – Indonesian central bank, Bank Indonesia (BI), trims the country’s GDP growth this year to 4.9 to 5.3 percent, on prospect of weakening global economic growth.

Perry Warjiyo, deputy governor of the Bank Indonesia on Friday disclosed that the lender expects the economy to accelerate at 4.9 to 5.3 percent this year, compared with its previous estimate of 5.0 to 5.4 percent.

Indonesia ships commodities overseas as the biggest parts of its exported products. The shipment has been subdued in recent years for weakening demand.

The deputy was quoted by Xinhuaa as saying that the slashing of the country’s development budget by 133 trillion rupiah (some 10.087 billion U.S. dollars) this year also contributed to the lower growth projection.

Private sector investment remains subdued and needs time for recovery, he added.

Indonesia’s economy expands at a faster pace at the second quarter, 5.18 percent after growing 4.92 percent at three month ended March, according to the National Statistic Agency (BPS).

The lender is waiting for an opportunity to resume easing policy after it conducted a pause for the second consecutive month on Friday as inflation is in check, Agus Martowardojo, governor of the bank said. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)