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Indonesian central bank projects Q2 growth to reach 5.15 pct over rising consumption
Source: Xinhua   2018-05-25 20:32:03

JAKARTA, May 25 (Xinhua) -- Indonesia's economic growth in the second quarter this year may reach up to 5.15 percent on the back of rising consumption, Indonesian central bank governor said on Friday.

The rising consumption was prompted by the upcoming distribution of Idul Fitri bonus and extra annual salary for civil servants, military, police and state retirees, the bank said.

Bank Indonesia Governor Perry Warjiyo said the second quarter growth projection was higher than 5.06 percent attained in the first quarter and in the same period last year that stood at 5.01 percent.

He said the distribution of Idul Fitri bonus and the extra annual salary, popularly known as the 13th salary, would significantly propel household consumption during the Idul Fitri holiday season in June.

The consumption surge during the holiday season would be facilitated by mild annual inflation that stood at 3.41 percent by April this year, holding back the prices of staple needs from increasing steeply during the festivity season, he added.

Besides stimulating the consumption, Perry said distribution of the extra salary and Idul Fitri bonus would eventually increase contribution of government spending to the economic growth.

This situation would become a fiscal stimulus in the second quarter, he pointed out.

The government has allocated some 35.76 trillion rupiah (about 2.50 billion U.S. Dollars) for the civil servants, military, police and state retirees bonus and extra salary, which would be distributed in early June and July this year.

Indonesia has set target to see 5.4 percent growth this year, higher that last years four-year-high 5.07 percent.

Editor: Shi Yinglun
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Indonesian central bank projects Q2 growth to reach 5.15 pct over rising consumption

Source: Xinhua 2018-05-25 20:32:03
[Editor: huaxia]

JAKARTA, May 25 (Xinhua) -- Indonesia's economic growth in the second quarter this year may reach up to 5.15 percent on the back of rising consumption, Indonesian central bank governor said on Friday.

The rising consumption was prompted by the upcoming distribution of Idul Fitri bonus and extra annual salary for civil servants, military, police and state retirees, the bank said.

Bank Indonesia Governor Perry Warjiyo said the second quarter growth projection was higher than 5.06 percent attained in the first quarter and in the same period last year that stood at 5.01 percent.

He said the distribution of Idul Fitri bonus and the extra annual salary, popularly known as the 13th salary, would significantly propel household consumption during the Idul Fitri holiday season in June.

The consumption surge during the holiday season would be facilitated by mild annual inflation that stood at 3.41 percent by April this year, holding back the prices of staple needs from increasing steeply during the festivity season, he added.

Besides stimulating the consumption, Perry said distribution of the extra salary and Idul Fitri bonus would eventually increase contribution of government spending to the economic growth.

This situation would become a fiscal stimulus in the second quarter, he pointed out.

The government has allocated some 35.76 trillion rupiah (about 2.50 billion U.S. Dollars) for the civil servants, military, police and state retirees bonus and extra salary, which would be distributed in early June and July this year.

Indonesia has set target to see 5.4 percent growth this year, higher that last years four-year-high 5.07 percent.

[Editor: huaxia]
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