4.5% Growth in Indonesia Forecast for Q4 Amid Stable Recovery

Indonesia’s economy is forecast to grow 4.5 percent in the fourth quarter from a year ago, broadly in line with previous estimates, as signs of a pick up in some sectors were not yet sufficient to revise up growth, Finance Minister Sri Mulyani Indrawati said on Tuesday.

Sri Mulyani also said the rupiah was currently trading around an “equilibrium” level and should remain around this level in the first quarter of 2010 provided there were no political disruptions. Southeast Asia’s biggest economy is expected to show growth of 4.3 to 4.4 percent for all of 2009, Sri Mulyani told reporters.

The minister said that even though several sectors had started to pick up, including telecommunications, construction and utilities, this was not sufficient to revise up growth yet. “There has also been a recovery in trade compared to the first three quarters but probably manufacturing industries have not seen a significant increase in the last quarter.” The finance minister had previously estimated growth for the fourth quarter would be between 4.6 percent to 4.7 percent, and 4.3 percent for the full year.  



Reuters

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