Consumer Spending Driving Good Growth Prospects: Bank Indonesia
Indonesia’s economy is expected to expand 6.0 percent to 6.3 percent this year on strong private consumption and exports, Bank Indonesia’s monetary management director, Handar, has said.
Strong private consumption will be seen as a result of non-food, car, motorcycle and electronic goods sales as well as consumer goods imports, he said. Consumer credit growth is also still high, he added, suggesting that private consumption remains strong.
“The economy is expected to pick up in the next several years. In 2011 it is projected to grow 6.0 to 6.5 percent,” he said.
Several industrial sectors are expected to grow at a higher pace, including transportation and telecommunications, the financial sector and the construction sector, he said.
Since early this month exports also have been on the increase in line with the gradual global economic recovery and improving commodity prices in global markets, he said.