Govt says economy to grow at least 6.5% in Q3

Esther Samboh, The Jakarta Post, Jakarta, Thu, 08/25/2011

The government expects Indonesia’s economy to grow “at least” 6.5 percent in the July-September period despite an anticipated slowdown in the global economy, a senior official says.

On Thursday, Finance Minister Agus Martowardojo said this growth would be supported by surging realization of investment on the back of improved disbursement in infrastructure projects.

“The global economy is going downward, but we will be better,” Agus said after a coordination meeting at Bank Indonesia headquarters in Jakarta. “All is in a good shape — economic growth, inflation [and the] exchange rate.”

Indonesia maintained an economic growth level of 6.5 percent in the first two quarters of this year while its Asian neighbors were facing "speed bump" woes over potential overheating and inflationary threats and when developed economies were slowing down.

Inflation also continued to decline to 4.61 percent in July and the rupiah, Asia’s second-best performing currency, has appreciated around 5 percent this year.

“But we should pay attention on oil and gas exports and imports as these have affected the reduction of our current account [surplus],” Agus said.