From Government of Indonesia

Q1 Growth Ahead of BI Prediction – BPS

Central Bureau of Statistics (BPS) chief Rusman Heriawan estimated that Indonesia`s economic growth in the first quarter of the year will surpass the central bank`s expectation of 5.4% but doubted it will exceed the Finance Department`s projection of 5.7% to 5.9%.

There are many reasons to believe that the economy would perform better in the first three months of 2007, Heriawan was quoted as saying by Antara on Tuesday (24/4/07).

In the three months ending last March 31, exports grew by more than 10% while investment rose by 27.16%, he said. Private consumption, expected to contribute 60% of the economic growth, was also on the rise, he added.

"Based on our preliminary calculation, economic growth has already exceeded 5.4%. But I don’t know whether it will go beyond 5.7% to 5.9%," he said.

Finance Minister Sri Mulyani Indrawati reiterated that with encouraging increases in consumption, exports and investment during the first three months of the year, the economy is well on track for higher growth of between 5.7% and 5.9%, The Jakarta Post reported.

"Things are generally improving in all areas of the economy that contribute to growth," she said. "We will still keep a watch on rice prices. But it seems that in April and May, the rice market will be better than earlier."

The indicators in the real sector monitored through value-added tax and income tax payments and trade flows showed an upward trend particularly in March, she said.

The government’s expenditures on goods and capital in the first quarter of 2007 were higher than those in the same periods in the past two years, she said.
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