REPUBLIKA.CO.ID, JAKARTA – Indonesian central bank, Bank Indonesia (BI), predicts the domestic economy will expand by 6.5 percent in the first quarter of 2012. The growth is fueled by exports, household consumption and investment.
Household consumption will become one of growth engines, along with consumers` strong confidence and high expectation of improving income and wages, according to the central bank`s monetary policy report in its official website, recently.
Meanwhile, the government`s spending in the first quarter of 2012 is expected to grow at a slower pace than in the previous quarter. However, investment in the construction and non-construction sectors is expected to grow thanks to strong economic fundamentals, business players` optimism and accelerated infrastructure projects, the report says.
On the external side, the increasing risk of global uncertainty is expected to begin affecting export performance in the first quarter of 2012.
Yet the impact is to be manageable along with the diversified market for Indonesian products in emerging economies which still shows a good performance. On sector basis, the report says, the first-quarter economy is expected to grow at a relatively high pace in the agricultural, mining and industrial sectors, among others.
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