REPUBLIKA.CO.ID, JAKARTA -- Government spending in the second quarter has the potential to increase economic growth, Head of the Central Bureau of Statistics (BPS) Suryamin said here on Wednesday.

"The potential is quite big. The spending could boost gross fixed capital formation, which could drive sectors where it is invested to increase productivity. For example, the sea toll road project will make distribution smoother," he explained at a press conference.

Suryamin stated that government spending in 2015 amounted to Rp275.8 trillion, which was far higher than the Rp160.8 trillion recorded the previous year.

"There is an addition of some Rp115 trillion from that last year. So it all depends on how the government expedites it," he remarked.

Suryamin further noted that export performance can also be boosted by increasing manufacturing production, taking advantage of the current depreciation of the rupiah.

"We can take advantage of the current depreciation of the rupiah. Our products abroad will be cheaper," he pointed out.

Indonesia's economy grew 4.67 percent (year-on-year) in the second quarter this year. Household consumption was the biggest source of growth, contributing 2.66 percent, a decline from 2.75 percent the previous quarter.

Another source of growth was gross fixed capital formation, which contributed 1.14 percent to the total, a drop from 1.38 percent the previous quarter.

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