Low Inflation to Trigger Consumption Growth: Minister

Jakarta, MINA – Indonesia`s low inflation rate in 2017 may serve as a momentum to boost household consumption, Antara News quoted Finance Minister Sri Mulyani Indrawati as saying.

“We hope that public confidence in purchasing power and perception of consumer confidence will always be maintained and can be increased,” she stated here on Monday.

She expressed hope that the inflation rate in the calendar year 2017, which was recorded at 2.87 percent, will be able to increase the public interests to boost domestic consumption until the end of this year.

In the third quarter of 2017, household consumption grew 4.93 percent, as compared to 4.95 percent in the previous quarter.

She noted that the higher household consumption may have a positive impact on other components of growth, such as investment, government consumption, and exports in the fourth quarter of 2017.

“If investment picks up, domestic consumption would be close to 5 percent, government consumption would contribute (to the growth, and then the fourth quarter growth will be positive and strong,” she remarked.

Sri Mulyani added that the improved economic performance at the end of 2017 may offer a momentum for the economy to grow more positively in 2018.

The domestic economic improvement is needed due to global uncertainty next year, which may have an impact on Indonesia`s economic performance, she revealed.

The global uncertainty is related to the planned tax reform in the US and to adjust the Fed rate, which may have an impact on the global economy, she added.

“If the momentum of the Indonesian economic growth is positive and strong, stability will always be maintained and protected from inflation and exchange rate,” she pointed out. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)