RI economy to grow 6.3 pct this year: BI official

Antara News, Friday, October 29, 2010 00:35 WIB

Mataram, W Nusa Tenggara (ANTARA News) - The Indonesian economy is expected to expand 6.0-6.3 percent this year on strong private consumption and exports, a central bank official said.

Household consumption was expected to contribute 4.9-5.2 percent, government consumption 4.2-4.5 percent, exports 13.4-13.7 percent, and imports 17.9-18.2 percent to the 2010 economic growth, Bank Indonesia Monetary Management Director Handar said at a seminar here on Thursday.

The strong private consumption would be the result of non-food consumption, car and motorcycle sales, electronic goods sales and consumer goods imports, he said.

On the financing side, consumer credit growth was still high, suggesting that private consumption remained strong, he said.

"Even the economy is expected to pick up in the next several years. In 2011 it is projected to grow 6.0-6.5 percent," he said.

Investment would likely continue to increase particularly starting the second semester of this year along with rising demand for additional production capacity, he said.

On the production side, several sectors were expected to grow at a higher pace, including the transportation and telecommunication sector, the financial sector and the construction sector, he said.

Since early this month exports also had been on the increase in line with the global economic recovery and improving commodity prices on the global market, he said.