Indonesian Economy in First Quarter Positive
Thursday, 12 April, 2007 | 17:34 WIB

Tempo Interactive, Jakarta: The Finance Department has stated that Indonesia’s economic growth in the first quarter of 2007 showed satisfying results.

According to Anggito Abimanyu, Head of the Fiscal Policy Body, economic growth in the first quarter of 2006 was between 5.7 and 5.9 percent, higher compared to 4.8 percent recorded in the same period last year.

In addition, the value of exports ands import grew respectively by 14.8 percent and 11.4 percent.

Economic and consumption activities in the first quarter of this year also increased.

According to Anggito, this is reflected in the increase of tax revenues, electricity consumption and motorbike sales.

“Investment trends and the profits of state enterprises have also increased,” he said in Jakarta yesterday (11/4).

The positive national economy, said Anggito, can be seen from other indicators including the relatively stable Rupiah exchange rate of around Rp9,1000 against the US Dollar.

Foreign exchange also rose to US$47.2 billion in March, 2007.

“The Jakarta composite share index also moved up and once again set new record at the level of 1,922.1,” said Anggito.

Therefore, he is optimistic that Indonesia is one of the countries whose economy is projected not to slow down due to US’s sluggish economy.

“Japan is also a country which is unaffected by this sluggishness,” said Anggito.

Tony Prasetiantono, an economist at PT Bank Negara Indonesia, pointed out that the government should not be satisfied with the positive economic signals of the first quarter.

This is because, the potential of worsening global economy due to the sluggishness of the US market still exists as long as domestic economic problems are not solved.

Anton Aprianto | Agus Supriyanto | Agoeng Wijaya
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