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Indonesian economy grows steadily in Q2

Staff Writer |
Indonesia's economy expanded steadily in the second quarter as consumption remained subdued and exports growth slowed.

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The national statistics bureau announced on Monday that the Southeast Asia's biggest economy grew 5.01 percent from April to June on yearly basis, equal with that in the first three months.

Household consumption, which accounts for about 57 percent of the GDP growth, expanded slightly 4.95 percent in the second quarter from a year earlier compared with 4.94 percent at the previous quarter, head of the bureau Kecuk Suhariyanto said.

Export was down 3.5 percent at the second quarter compared with that in the first quarter, said Suhariyanto.

Indonesia has attempted to accelerate economic growth to create jobs in the country with a population of over 250 million.

For this year, the government expects 5.2 percent GDP growth, higher than that of 5.02 percent last year.

Governor of Indonesian Central Bank Agus Martowardojo said on Friday that the lender is open for easing monetary policy due to low inflation and relatively stable rupiah.

The bank will carry out a two-day governor board meeting from Aug. 21 to decide upcoming monetary policy.

The bank has applied a neutral stance since October 2016 by keeping its benchmark interest rate at 4.75 percent despite rate hikes applied by the U.S. Federal Reserve and the hawkish prospect of its upcoming policy.

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